In a Big Apple Bagels franchise assignment between franchisees, what document related to the Assignee's obligations must the Assignor and Assignor's owners execute?

According to the 2025 Big Apple Bagels Franchise Disclosure Document, in the event of a franchise assignment, the assignor (the seller) and the assignor's owners may be required to execute a guaranty for the performance by the transferee (the buyer) of its obligations under the Franchise Agreement. The duration of this guaranty will not exceed the remainder of the term of the assignor's Franchise Agreement, as determined by Big Apple Bagels.

This means that if a franchisee sells their Big Apple Bagels location to another party, they (and potentially their owners) might still be on the hook for ensuring the new owner fulfills the franchise obligations. This could include maintaining brand standards, paying royalties, and adhering to the terms of the franchise agreement. The exact length of this continued responsibility is determined by Big Apple Bagels but cannot be longer than the original franchise term.

This requirement protects Big Apple Bagels by providing an additional layer of security in case the new franchisee fails to meet their obligations. For a selling franchisee, it's crucial to understand the potential long-term liability they might face even after selling the business. They should carefully evaluate the financial stability and operational capabilities of the potential buyer to minimize the risk of future claims against them. It is also important to note that the transferee must execute the Transferee's Waiver and Release, attached as Exhibit O to Franchisor's disclosure document.