What does a Big Apple Bagels franchisee's execution of a lease for a site constitute?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, when a franchisee executes a lease for a site, it means they accept the site, its location, and the terms of the lease, sublease, or purchase agreement. This signifies the franchisee's agreement with the chosen location and the contractual obligations associated with it.

This acceptance has important implications for a prospective Big Apple Bagels franchisee. Before signing a lease, franchisees should conduct thorough due diligence on the site's suitability, considering factors like demographics, competition, and accessibility. Since the execution of the lease signifies acceptance, franchisees need to be confident in their assessment of the location's potential for success.

Big Apple Bagels also requires franchisees to submit the lease for the premises to the franchisor for examination and approval before it is executed. The lease must state that the premises will be used only for a Big Apple Bagels store and contain specific provisions that allow BAB Systems, Inc. to have certain rights, including the ability to receive sales data and cure defaults. Franchisees must also execute a Collateral Assignment of Lease, assigning their rights to the franchisor as collateral, which can be exercised upon default.