What must a Big Apple Bagels franchisee furnish to the franchisor upon completion of construction?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further agrees that, promptly after obtaining possession of the site for the Store, he will: (i) cause to be prepared and submit for approval by Franchisor a site plan.
Franchisor shall then provide basic drawings and specifications, including requirements for dimensions, exterior design, materials, interior layout, equipment, fixtures, furniture, signs, and decorating required for the development of a BAGELS Store; Franchisee is required to take these drawings and specifications to a licensed architect who will modify them, if required, to meet applicable ordinances, building codes or permit requirements (Franchisor must approve any such modifications to the drawings and specifications); (ii) obtain all required zoning changes, all required building, utility, health, sanitation and sign permits and any other required permits and licenses; (iii) purchase or lease equipment, fixtures, furniture and signs as hereinafter provided; (iv) complete the construction and/or remodeling, equip, furnish and decorate the BAGELS Store in full and strict compliance with plans and specifications approved by Franchisor and all applicable ordinances, building codes and permit requirements; (v) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating and installation services; and (vi) upon completion of construction, furnish Franchisor final costs for the construction, equipment, build-out, deposits, and total development of the BAGELS Store.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, upon completion of construction, a franchisee must furnish the franchisor with the final costs for the construction, equipment, build-out, deposits, and total development of the Big Apple Bagels store. This information provides the franchisor with a comprehensive overview of the franchisee's investment in establishing the store.
This requirement ensures that Big Apple Bagels has a clear understanding of the financial resources franchisees are allocating to their stores. This allows the franchisor to monitor investment levels across the franchise system and potentially identify trends or issues related to development costs.
For a prospective franchisee, this means maintaining detailed records of all expenses incurred during the construction and build-out phase. Accurate tracking of these costs is essential for fulfilling this obligation and for the franchisee's own financial management. This also highlights the importance of budgeting and cost control during the initial development phase to avoid any surprises when reporting the final costs to Big Apple Bagels.