For Big Apple Bagels, does the franchisor have any pending administrative actions alleging a felony?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added at the end of Item 3:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature or financial condition of the
franchise system or its business operations.
C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10 year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, there are no pending administrative actions alleging a felony against the franchisor, its predecessor, any individuals identified in Item 2, or any affiliates offering franchises under the Big Apple Bagels trademark. Specifically, the FDD states that no such party has an administrative, criminal, or civil action pending against them alleging a felony, a violation of franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
This statement provides reassurance to potential Big Apple Bagels franchisees. It indicates that the company and its key personnel are not currently involved in any legal disputes that could significantly impact the franchise system. This lack of pending actions suggests a stable and legally compliant business environment, which can be a positive factor for prospective franchisees.
However, the disclosure also notes exceptions. The absence of pending felony allegations is specifically stated "except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark." This suggests that there may be other disclosures elsewhere in the FDD that could modify this statement. Additionally, the statement only addresses pending actions. It does not address past convictions or settlements, which are covered in a separate point. Therefore, while the absence of pending felony allegations is a positive sign, prospective franchisees should carefully review the entire FDD, including Item 3, to gain a comprehensive understanding of the franchisor's legal history.