For a Big Apple Bagels franchise in Virginia, what does the franchisee agree to regarding the addendum?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum is to a BAGELS Franchise Agreement dated , 20 between BAB Systems, Inc. and (Franchisee) to amend said Agreement as follows: 1. Paragraph 16.a.x. of the BAGELS Franchise Agreement on Termination for Failure to Complete Training is amended to read in its entirety as follows: Successful Completion of Training. The grant of the franchise herein is conditioned upon successful completion of the sales/operations seminar and technical training seminar by Franchisee (or Franchisee's individual owner if Franchisee is a corporation, partnership, or other entity.) If during the course of the training programs or within fifteen (15) days thereafter Franchisor concludes that Franchisee has not successfully completed the sales/operations seminar and technical training seminar, may, in its sole discretion and judgment, cancel this Agreement and all rights hereunder, where permitted by applicable law, by giving notice to Franchisee and tendering to Franchisee a refund of its initial franchise fee less an amount to cover the reasonable expenses incurred by Franchisor in connection with training Franchisee. Franchisee agrees that such refund shall be the full extent of Franchisor's liability and responsibility in the event of such cancellation, and Franchisee and its owners shall execute a general release, in a form satisfactory to Franchisor, of any and all claims against Franchisor and its affiliates, officers, directors, employees and agents. Upon cancellation of this Agreement, Franchisee shall return to Franchisor all materials, manuals, information and all other items that Franchisee received from Franchisor, including all copies thereof and notes thereon which Franchisee may have or control. Franchisee further agrees to maintain strictly the confidentiality of all information received relating to the BAB System and not to use in the operation of a food service or similar business, any trade secrets or confidential information obtained from Franchisor in the course of the training program or otherwise. In witness whereof, each of the undersigned hereby acknowledges having read this Addendum, understands and consents to be bound by all of its terms, and agrees it shall become effective the day of, 20 BAB SYSTEMS, INC.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchisee in Virginia agrees to the terms outlined in the BAB Systems, Inc. Addendum to the Bagels Franchise Agreement. This addendum modifies specific paragraphs of the standard franchise agreement to comply with Virginia law.
Specifically, the addendum addresses the conditions under which the franchise can be terminated if the franchisee fails to complete training successfully. The franchisee acknowledges that the grant of the franchise is contingent upon successful completion of the sales/operations seminar and technical training. If Big Apple Bagels determines that the franchisee has not successfully completed the training programs within fifteen days after the training, Big Apple Bagels may cancel the agreement, refunding the initial franchise fee less expenses. In such a case, the franchisee agrees that this refund is the full extent of Big Apple Bagels' liability, and the franchisee must sign a general release of claims against Big Apple Bagels.
Additionally, the franchisee agrees to return all materials received during training and maintain the confidentiality of information related to the Big Apple Bagels system. The addendum also states that it is unlawful for Big Apple Bagels to cancel a franchise without reasonable cause, as defined by the Virginia Retail Franchising Act. The franchisee acknowledges having read the addendum, understanding its terms, and consenting to be bound by them, making the addendum effective as of the agreed-upon date.