What is the geographic limit for the application of the Virginia addendum to the Big Apple Bagels Franchise Agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT R BAB SYSTEMS, INC. ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT FOR THE COMMONWEALTH OF VIRGINIA
This Addendum is to the Franchise Disclosure Document of BAB Systems, Inc. for the Commonwealth of Virginia.
Item 17.h. shall be amended to add the following:
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the BAGELS Franchise Agreement or the BAGELS Area Development Agreement do not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, the addendum applies specifically to franchisees operating in the Commonwealth of Virginia. This means that the modifications and additions outlined in the addendum are only relevant and enforceable for Big Apple Bagels franchises located within Virginia.
The Virginia addendum addresses specific legal considerations within the state, such as Section 13.1-564 of the Virginia Retail Franchising Act, which makes it unlawful for a franchisor to cancel a franchise without reasonable cause. The addendum clarifies that if any termination clauses in the standard Big Apple Bagels Franchise Agreement do not meet the definition of "reasonable cause" under Virginia law, those clauses may not be enforceable in Virginia.
For a prospective Big Apple Bagels franchisee, this means that if you are planning to open a franchise in Virginia, you need to pay close attention to the Virginia addendum. It modifies certain aspects of the standard franchise agreement to comply with Virginia law, particularly regarding termination rights. If you are opening a franchise outside of Virginia, this addendum would not apply to your franchise agreement.