What is emphasized regarding time within the Big Apple Bagels agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BAB agrees to expend such time and effort and to incur such expense as may reasonably be required to inspect sites proposed by PROSPECTIVE FRANCHISEE for a BAGELS Store to be operated by PROSPECTIVE FRANCHISEE. Unless PROSPECTIVE FRANCHISEE withdraws his application for a Franchise as hereinafter provided, PROSPECTIVE FRANCHISEE agrees that within fourteen (14) days of approval by BAB of a site for PROSPECTIVE FRANCHISEE's BAGELS Store, PROSPECTIVE FRANCHISEE will execute BAB's Franchise Agreement, in the form delivered to PROSPECTIVE FRANCHISEE. In the event PROSPECTIVE FRANCHISEE fails to execute BAB's Franchise Agreement within said fourteen (14) days, BAB may, at its sole option, terminate this Preliminary Agreement, in which event PROSPECTIVE FRANCHISEE shall not be entitled to any refund of the Deposit.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels FDD, time is emphasized in relation to site approval and the execution of the Franchise Agreement. Specifically, a prospective franchisee has a limited window to act once a site is approved by Big Apple Bagels.
The FDD states that after Big Apple Bagels approves a site for the prospective franchisee's store, the franchisee has fourteen (14) days to execute the Franchise Agreement. If the prospective franchisee fails to do so within this timeframe, Big Apple Bagels has the option to terminate the Preliminary Agreement. Should Big Apple Bagels exercise this option, the prospective franchisee will not be entitled to a refund of their deposit.
This clause creates a time-sensitive obligation for the prospective franchisee. They must be prepared to finalize and sign the Franchise Agreement promptly once a location is secured and approved. Failing to meet this deadline could result in the loss of the deposit, which is a significant financial risk. This is a fairly standard practice in franchising, as franchisors need to keep the process moving forward and avoid delays that could impact their overall development plans.