Is the Big Apple Bagels franchisor obligated by any agreements made by the franchisee?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Franchisor nor Franchisee shall make any express or implied agreements, guaranties or representations or incur any debt in the name of or on behalf of the other or represent that their relationship is other than that of franchisor and franchisee.
Neither Franchisor nor Franchisee shall be obligated by or have any liability under any agreements or representations made by the other.
Franchisor shall have no liability or obligation for any damages to any person or property directly or indirectly arising out of the development or operation of the Store, whether or not caused by Franchisee's negligent or willful action or failure to act.
Franchisor shall have no liability for any sales, use, excise, gross receipts, property or other taxes of Franchisee or the Store.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchisor is not obligated by any agreements or representations made by the franchisee. The FDD states that neither Big Apple Bagels nor the franchisee can make agreements, guarantees, or representations on behalf of the other party, nor can they incur debt in the name of the other. The relationship between the franchisor and franchisee is strictly that of franchisor and franchisee.
This means that a Big Apple Bagels franchisee operates independently and is responsible for their own business agreements and debts. The franchisor is not liable for the franchisee's actions or financial obligations. This protects Big Apple Bagels from potential legal or financial issues arising from the franchisee's business operations.
Furthermore, the FDD clarifies that Big Apple Bagels is not liable for damages to any person or property resulting from the development or operation of the store, regardless of whether the franchisee's actions or failures caused the damages. Big Apple Bagels also has no liability for the franchisee's sales, use, excise, gross receipts, property, or other taxes. This reinforces the independent nature of the franchise relationship and the franchisee's responsibility for their own business conduct and financial obligations.