Must the Big Apple Bagels franchisor approve the material terms and conditions of the assignment?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchisor's approval of the material terms and conditions of a franchise assignment is required. Specifically, before a Big Apple Bagels franchisee can transfer their franchise, the franchisor must approve the key terms and conditions associated with that transfer. This requirement ensures that Big Apple Bagels maintains control over who becomes a franchisee and under what terms.

This condition is one of several that must be met before a transfer can be approved. Other conditions include the transferee meeting the franchisor's standards for financial responsibility, moral character, and suitability as an operator. The franchisee must also pay a $5,000 transfer fee to Big Apple Bagels before the transferee attends the required training program. Furthermore, all outstanding debts and obligations to the franchisor and its affiliates must be settled before the transfer can proceed.

Additionally, the transferee may be required to execute either an assignment and assumption agreement or the franchisor's current form of franchise agreement. The franchisor also requires that the lessor of the premises consents to the assignment or sublease to the proposed transferee, if required. These stipulations collectively ensure that any new franchisee meets Big Apple Bagels' standards and that the transfer does not negatively impact the brand or other franchisees.

For a prospective Big Apple Bagels franchisee, this means that selling their franchise is not a simple transaction. It requires careful adherence to the franchisor's requirements and approval process. The franchisee must find a suitable buyer who meets Big Apple Bagels' criteria, settle all outstanding financial obligations, and ensure that all necessary legal and contractual requirements are met. This process protects both the franchisor's interests and the integrity of the Big Apple Bagels brand.