Can a Big Apple Bagels franchisee transfer their franchise without the franchisor's approval?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
hat Franchisor requests in connection with an audit of Franchisee's Store under Section 12.a. of this Agreement.
14. TRANSFER
a. By Franchisor. This Agreement is fully transferable by Franchisor and shall inure to the benefit of any transferee or other legal successor to the interests of Franchisor herein.
b. By Franchisee.
- i. Franchisee May Not Transfer Without Approval of Franchisor. Franchisee understands and acknowledges that the rights and duties created by this Agreement are personal to Franchisee (and its owners) and that Franchisor has granted the Franchise to Franchisee (and its owners) in reliance upon the individual or collective character, skill, aptitude, attitude, business ability and financial capacity of Franchisee (and its owners). Accordingly, neither this Agreement nor the Franchise (or any interest therein), nor any part or all of the ownership of Franchisee or of the assets of Franchisee or the BAGELS Store (or any interest therein) may be transferred, sold, assigned, pledged, mortgaged or liened without the prior written approval of Franchisor, and any such transfer or attempt to transfer without such approval shall constitute a breach hereof, such be null and void, and shall convey no rights to or interests in this Agreement, the Franchise, Franchisee, the BAGELS Store or its assets.
- ii. Conditions for Approval of Transfer. If Franchisee and its owners are in full compliance with this Agreement, Franchisor shall not unreasonably withhold its approval of a transfer that meets all the applicable requirements of this Paragraph. The proposed transferee and its owners must be
individuals of good moral character and otherwise meet Franchisor's then applicable standards for BAGELS Store franchisees. Franchisor shall interview and evaluate the proposed transferee at Franchisor's principal place of business or at such other location that Franchisor designates. A transfer of ownership in the BAGELS Store may only be made in conjunction with a transfer of this Franchise Agreement. All of the following conditions must be met prior to or concurrently with the effective date of the transfer (unless otherwise specified):
- (1) the assignee, transferee or purchaser shall have been approved by Franchisor for financial responsibility, good moral character and suitability as an operator of a BAGELS Store;
- (2) Franchisee shall pay to Franchisor prior to transferee attending the required training program a transfer fee of Five Thousand Dollars ($5,000.00), which is not refundable in whole or in part under any circumstances;
- (3) the assignee, transferee or purchaser shall not be engaged in any activity which would be prohibited by Paragraph 9.f. of this Agreement;
- (4) Franchisee shall have paid all outstanding debts and obligations to Franchisor and its Affiliates, including the royalty fees and all amounts due the Marketing Fund, and to its designated suppliers;
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a franchisee cannot transfer their franchise agreement or any interest in it without prior written approval from Big Apple Bagels. Attempting to do so without approval constitutes a breach of the agreement, rendering the transfer void and conveying no rights to the involved parties.
Big Apple Bagels grants the franchise based on the franchisee's individual or collective character, skills, business ability, and financial capacity. Therefore, any transfer requires careful consideration by Big Apple Bagels to ensure the new franchisee meets their standards.
If a franchisee is in full compliance with the franchise agreement, Big Apple Bagels will not unreasonably withhold approval of a transfer that meets all requirements. The proposed transferee must be of good moral character and meet Big Apple Bagels' standards. The transferee will be interviewed and evaluated by Big Apple Bagels. A transfer of ownership can only occur with a transfer of the Franchise Agreement.
Prior to the transfer, the transferee must complete Big Apple Bagels' training program, modified for transferees, at their own expense. The franchisee must pay a $5,000 transfer fee to Big Apple Bagels before the transferee attends the training program, which is non-refundable. The transferee must also submit a Store Opening Marketing Fee of $1,000 to conduct a "re-Grand Opening." The transferor and its owners may remain liable for the transferee's obligations under the Franchise Agreement, not exceeding the remainder of the transferor's Franchise Agreement.