On whom is the Big Apple Bagels franchise agreement binding?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
b. By Franchisee.
- i. Franchisee May Not Transfer Without Approval of Franchisor. Franchisee understands and acknowledges that the rights and duties created by this Agreement are personal to Franchisee (and its owners) and that Franchisor has granted the Franchise to Franchisee (and its owners) in reliance upon the individual or collective character, skill, aptitude, attitude, business ability and financial capacity of Franchisee (and its owners). Accordingly, neither this Agreement nor the Franchise (or any interest therein), nor any part or all of the ownership of Franchisee or of the assets of Franchisee or the BAGELS Store (or any interest therein) may be transferred, sold, assigned, pledged, mortgaged or liened without the prior written approval of Franchisor, and any such transfer or attempt to transfer without such approval shall constitute a breach hereof, such be null and void, and shall convey no rights to or interests in this Agreement, the Franchise, Franchisee, the BAGELS Store or its assets.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchise agreement establishes rights and duties that are personal to the franchisee and its owners. Big Apple Bagels grants the franchise to the franchisee and its owners based on their individual or collective character, skills, aptitude, attitude, business ability, and financial capacity.
As a result, the agreement explicitly states that neither the agreement itself, nor the franchise, nor any ownership interest in the franchisee or the Big Apple Bagels store's assets can be transferred, sold, assigned, pledged, mortgaged, or liened without prior written approval from Big Apple Bagels. Any attempt to do so without approval constitutes a breach of the agreement and is considered null and void.
This clause ensures that Big Apple Bagels maintains control over who operates its franchises and protects the brand's reputation by ensuring that only qualified and approved individuals or entities are involved. This is a common practice in franchising to maintain consistency and quality across all locations.