What is a Big Apple Bagels franchisee required to do if they want to change their banking relationships?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that prior to obtaining possession of the site for the BAGELS Store, he shall secure all financing required to fully develop the BAGELS Store.
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)
Based on the 2025 Franchise Disclosure Document, the FDD does not specify any requirements or procedures a Big Apple Bagels franchisee must follow if they want to change their banking relationships. The document does not address this aspect of financial management.
However, the FDD does outline financial obligations related to store development. Franchisees must secure all financing required to fully develop their Big Apple Bagels store before taking possession of the site. They are also required to furnish the franchisor with final costs for construction, equipment, build-out, deposits, and total store development upon completion of construction.
Since the FDD does not provide information on changing banking relationships, prospective Big Apple Bagels franchisees should directly ask the franchisor about any requirements or restrictions related to banking and financial institutions. This will help them understand the extent of their autonomy in managing their store's finances.