Can a franchisee withdraw their application for a Big Apple Bagels franchise during the term of the agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| a. Length of the | Paragraph 3 | 60 days |
| Preliminary Agreement | ||
| term | ||
| b .Renewal or extension of | Paragraph 3.c.. | If you timely submit at least 1 site to us, which we do not approve, we |
| the term | may grant an extension of the term | |
| c. Requirements for Franchisee to renew or extend | Paragraph 3.c. | If you timely submit at least 1 site to us, which we do not approve, we may grant an extension of the term |
| d. Termination by Franchisee | Paragraphs 3.a, 5,a | You may withdraw your application for a franchise during term of agreement You may terminate the agreement under any grounds permitted by law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 69–75)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, a franchisee can withdraw their application for a franchise during the term of the Preliminary Agreement. The table within Item 17 outlines the terms of the Preliminary Agreement, which lasts for 60 days as stated in Paragraph 3.
The franchisee's ability to withdraw their application is detailed in Paragraphs 3.a and 5.a. Additionally, the franchisee has the right to terminate the agreement based on any legal grounds. This provides the franchisee with a degree of flexibility during the initial phase before entering into the full franchise agreement.
It is important to note that this withdrawal option pertains specifically to the Preliminary Agreement. The FDD does not specify whether or not a franchisee can withdraw their application once the franchise agreement has been signed. A prospective franchisee should inquire with Big Apple Bagels about the possibility of withdrawing an application after the franchise agreement has been signed, as well as any potential penalties or fees associated with such a withdrawal.