Can the Big Apple Bagels Franchisor assign the Franchise Agreement to another party?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added to the end of the "Summary" section of Item 17(j), titled "Assignment of contract by franchisor":
However, no assignment will be made except to an assignee who in good faith and judgment of the franchisor, is willing and financially able to assume the franchisor's obligations under the BAGELS Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, the franchisor can assign the franchise agreement to another party. However, any assignment will only be made to an assignee who, in the good faith and judgment of Big Apple Bagels, is willing and financially able to assume the franchisor's obligations under the Franchise Agreement.
This provision ensures that if Big Apple Bagels decides to transfer the franchise agreement to a new entity, that entity must be capable of fulfilling the franchisor's responsibilities. This protects franchisees by ensuring the new franchisor has the willingness and financial stability to support the Big Apple Bagels system.
This type of clause is relatively standard in franchising. It allows the franchisor flexibility in structuring its business while providing some assurance to franchisees that any new franchisor will be a responsible party. Prospective franchisees should still carefully evaluate the financial condition and business experience of any potential new franchisor if such a transfer were to occur.