What is the due date for attorneys' fees and costs for Big Apple Bagels?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Attorneys' Fees and | Varies | As incurred. | Payable to BAB if BAB prevails in any action. |
| Costs |
Source: Item 6 — OTHER FEES (FDD pages 21–25)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, attorneys' fees and costs are due as incurred. This means that if Big Apple Bagels prevails in any action and incurs legal fees, the franchisee is responsible for paying those fees to Big Apple Bagels as they arise. The amount of these fees can vary.
For a prospective Big Apple Bagels franchisee, this signifies a potentially unpredictable expense. Unlike fixed fees, attorneys' fees and costs depend on the nature and extent of any legal actions. It is important to understand the circumstances under which Big Apple Bagels might pursue legal action and the potential magnitude of such costs.
This 'as incurred' payment term is relatively standard in franchising. Franchise agreements often stipulate that the franchisee bears the franchisor's legal costs if the franchisor wins a legal dispute. Therefore, a prospective franchisee should carefully review the franchise agreement to understand the potential situations that could trigger these fees and consider negotiating terms or seeking clarification on what constitutes 'prevailing' in an action.