Is a Big Apple Bagels franchisor required to provide a reason when revoking a waiver?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Any waiver granted by Franchisor shall be without prejudice to any other rights Franchisor may have, will be subject to continuing review by Franchisor, and may be revoked, in Franchisor's sole discretion, at any time and for any reason, effective upon delivery to Developer of ten (10) days' prior written notice.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchisor has the authority to revoke any waiver that was previously granted to a developer (franchisee). The franchisor can revoke the waiver at any time, for any reason, at their sole discretion. Big Apple Bagels is only required to provide a ten (10) day prior written notice to the developer.
This means that a Big Apple Bagels franchisee could initially be granted a waiver for a specific requirement or obligation, but that waiver can be taken away with only a short notice period. This could potentially create operational or financial challenges for the franchisee if they were relying on the waiver.
Prospective franchisees should consider this clause carefully and understand that any waivers granted are not permanent and can be revoked without a stated cause. It would be prudent to discuss with the franchisor under what circumstances a waiver might be revoked to better assess the risks involved.