What happens after the deadline for opening the relocated Big Apple Bagels store?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of relocation, the parties will enter into an agreement which will set forth the new location for Franchisee's BAGELS Store and a deadline by which Franchisee must open for business at the new location, after which time Franchisee will be obligated to resume paying the royalty fee and Marketing Fund Contributions whether or not the new location has opened for business.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, in the event of a store relocation, a new agreement will be created that specifies the new location and a deadline for opening the relocated store. After this deadline, the franchisee is obligated to resume paying royalty fees and Marketing Fund Contributions, regardless of whether the new location is open for business. This means that a Big Apple Bagels franchisee will be responsible for these ongoing fees even if the relocation is delayed.
This policy has significant financial implications for a franchisee. Franchisees need to carefully manage the relocation process to ensure the new store opens on time. Delays in construction, permitting, or other factors could result in the franchisee paying royalties and marketing fees for a store that is not yet generating revenue. This could put a strain on the franchisee's finances and impact the profitability of the business.
This type of clause is not uncommon in franchise agreements, as it protects the franchisor's revenue stream and encourages franchisees to complete relocations promptly. However, prospective Big Apple Bagels franchisees should fully understand this obligation and factor it into their relocation plans and financial projections. It would be prudent to discuss potential scenarios and seek clarification from Big Apple Bagels regarding any flexibility or support they might offer in case of unforeseen delays during the relocation process.