In the Big Apple Bagels Franchise Agreement, where is the location of the store specified?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
i. The location of Franchisee's Store must be approved by Franchisor. Franchisee may operate the Store only at the location specified in Paragraph 1.a. and Rider A to this Agreement and may not relocate the Store except with Franchisor's prior written consent. If the site for the Store has not been located by Franchisee at the time of execution of this Agreement, Franchisee agrees to locate and submit to Franchisor for approval, within ninety (90) days after the date of execution of this Agreement, a site suitable for the operation of a BAGELS Store and acceptable to Franchisor. Franchisee must use a licensed real estate broker who specializes in commercial real estate. Franchisee must locate the site for his Store and provide written detailed site information to Franchisor as Franchisor prescribes. Franchisor shall assist Franchisee in the selection of the site. Franchisor has the right to withhold its approval of a site.
- ii. Franchisee shall submit the lease for the premises of the Store to Franchisor prior to its execution for Franchisor's examination and approval. The lease for the premises of the Store shall state that the premises shall be used only for a BAGELS Store and contain substantially the following provisions:
"Anything contained in this lease to the contrary notwithstanding, Lessor agrees that, without its consent, this lease and the right, title and interest of the Lessee thereunder, may be assigned by the Lessee to BAB Systems, Inc., an Illinois Corporation, or its designee, provided that said BAB Systems, Inc. or its designee shall execute such documents evidencing its agreement to thereafter keep and perform, or cause to be kept or performed, all of the obligations of the Lessee arising under this lease from and after the time of such assignment."
"Lessor agrees that Lessor shall, upon written request of BAB Systems, Inc., disclose to said corporation, all reports, information or data in Lessor's possession with respect to sales made in, upon or from the leased premises."
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, the location of the franchisee's store is specified in Paragraph 1.a. and Rider A of the Franchise Agreement. The franchisee can only operate their Big Apple Bagels store at this approved location and needs the franchisor's written consent to relocate.
If a franchisee hasn't secured a site when signing the Franchise Agreement, they have 90 days to find a location suitable for a Big Apple Bagels store and get it approved by the franchisor. To assist in this process, Big Apple Bagels requires the franchisee to use a licensed commercial real estate broker and to provide detailed site information to the franchisor. The franchisor also offers assistance in site selection but retains the right to withhold approval.
Furthermore, before execution, the franchisee must submit the store lease to Big Apple Bagels for examination and approval. The lease must state that the premises will be used only for a Big Apple Bagels store and include specific provisions allowing the lease to be assigned to BAB Systems, Inc. or its designee, and requiring the lessor to disclose sales information to BAB Systems, Inc. upon request.