Is the Big Apple Bagels franchisor obligated by agreements made by the franchisee?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchisor is not obligated by agreements or representations made by the franchisee. The FDD states that neither Big Apple Bagels nor the franchisee is obligated by or has any liability under any agreements or representations made by the other. This means a franchisee cannot make agreements on behalf of Big Apple Bagels that would bind the franchisor legally or financially.

This provision protects Big Apple Bagels from being held liable for any unauthorized commitments or misrepresentations made by its franchisees. It also clarifies that the relationship between Big Apple Bagels and its franchisees is strictly that of franchisor and franchisee, and not a partnership or agency relationship where one party can bind the other. Franchisees must identify themselves as independent owners operating under a franchise from Big Apple Bagels in all their dealings.

This type of clause is standard in franchise agreements to ensure that the franchisor maintains control over its brand and is not exposed to liabilities arising from the independent actions of its franchisees. Prospective franchisees should be aware of this provision and ensure they do not represent themselves as agents of Big Apple Bagels or make any commitments that could be interpreted as binding on the franchisor without express written consent.