What exhibits are included in the Big Apple Bagels Franchise Disclosure Document?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT R TO FRANCHISE DISCLOSURE DOCUMENT
STATE ADDENDUM
Some administrators of franchise registration states may require BAB to enter into an addendum to the BAB SYSTEMS, INC. Franchise Disclosure Document and Franchise Agreement describing certain state laws or regulations which may supersede the Franchise Disclosure Document or Franchise Agreement. If you are in a registration state which requires an addendum, it will follow this page.
Attached are the state addenda for California, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Rhode Island, Virginia, sand Wisconsin.
No statement, questionnaire, or
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, Exhibit R includes addenda to the Franchise Disclosure Document for several states. These states include California, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Rhode Island, Virginia, and Wisconsin. These addenda contain modifications to the standard franchise agreement to comply with specific state laws and regulations.
For a prospective Big Apple Bagels franchisee, it is crucial to carefully review the addendum for their specific state, as it outlines any deviations from the standard franchise agreement. These modifications can cover various aspects, such as dispute resolution, termination and renewal rights, and waivers of certain legal protections. Understanding these state-specific provisions is essential for making informed decisions and protecting their interests as a franchisee.
For example, the California addendum notes that the franchisee must sign a personal guarantee, potentially putting personal and marital assets at risk. The North Dakota addendum modifies provisions related to renewal, termination, non-competition, and dispute resolution to comply with North Dakota law. The Virginia addendum modifies Item 17.h regarding cancellation of a franchise and Item 20 regarding Table 3 Status Franchised Outlets. These examples highlight the importance of understanding the specific addendum for the franchisee's state.
It is also important to note that the Washington Addendum applies to the BAGELS Preliminary Agreement, Disclosure Acknowledgment Statement, and related agreements. The state addenda are designed to ensure that the Big Apple Bagels franchise agreement complies with local laws and provides franchisees with the protections mandated by those laws. Franchisees should consult with an attorney to fully understand the implications of these state-specific provisions.