Is a Big Apple Bagels franchisee allowed to assign the Preliminary Agreement?

According to Big Apple Bagels's 2025 Franchise Disclosure Document, franchisees are not allowed to assign the Preliminary Agreement. The FDD outlines various provisions related to the franchise agreement, including details about termination, renewal, and transfer rights. Specifically, it addresses the franchisee's ability to transfer or assign the Preliminary Agreement.

This restriction on assignment means that a prospective Big Apple Bagels franchisee who signs a Preliminary Agreement cannot transfer their rights or obligations under that agreement to another party. This is a fairly standard practice in franchising, as franchisors typically want to ensure that the individuals they initially vet and approve are the ones who proceed with the franchise. Allowing assignment could introduce unvetted individuals into the system, which could pose risks to the brand and other franchisees.

For a potential Big Apple Bagels franchisee, this means that if they enter into a Preliminary Agreement and subsequently decide they cannot or do not want to proceed with the franchise, they cannot simply transfer the agreement to someone else. They may forfeit any deposits or payments made under the Preliminary Agreement, depending on the specific terms outlined in that agreement. It is crucial for prospective franchisees to carefully consider their decision before signing the Preliminary Agreement, as they will be bound by its terms and unable to transfer it to another party.

This provision protects Big Apple Bagels by ensuring they maintain control over who enters into a franchise agreement. Franchisees should be aware of this restriction and its implications before signing any agreements.