For a Big Apple Bagels franchise in Virginia, what does the franchisee understand 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.
This Addendum is to the Franchise Disclosure Document of BAB Systems, Inc. for the Commonwealth of Virginia.
Item 17.h. shall be amended to add the following:
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the BAGELS Franchise Agreement or the BAGELS Area Development Agreement do not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Item 20 shall be amended to replace Table 3 with the following:
Table No. 3 Status Franchised Outlets For years 2022 to 2024
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a Virginia franchisee is subject to specific addenda that modify the standard franchise agreement. One addendum addresses the conditions under which the agreement can be terminated if the franchisee fails to complete training successfully. Specifically, if Big Apple Bagels concludes within fifteen days after the training programs that the franchisee has not successfully completed the required sales/operations and technical training, Big Apple Bagels has the right to cancel the agreement.
In the event of cancellation due to unsuccessful training, the franchisee will receive a refund of the initial franchise fee, minus the expenses Big Apple Bagels incurred for the training. The franchisee acknowledges that this refund represents the full extent of Big Apple Bagels' liability, and the franchisee must sign a release of all claims against Big Apple Bagels. Furthermore, the franchisee is obligated to return all materials and information received during training and maintain the confidentiality of the BAB System's trade secrets.
Another addendum addresses Item 17.h. of the Franchise Disclosure Document, noting that under Virginia law, Big Apple Bagels cannot cancel a franchise without reasonable cause. If any termination grounds listed in the franchise agreement do not meet the definition of "reasonable cause" under Virginia law, those provisions may not be enforceable. The document also stipulates that Item 20, related to Table 3 concerning the status of franchised outlets for the years 2022 to 2024, will be amended, though the specific changes to Table 3 are not detailed in this excerpt.