What happens to a Big Apple Bagels franchise in the event of the franchisee's death or disability?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| p. Death or disability or | Paragraph 14.c. | Franchise or ownership interest in you must be assigned to approved |
| Franchisee | buyer within 6 months |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 69–75)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, in the event of the franchisee's death or disability, the franchise or ownership interest in the company must be assigned to an approved buyer within six months. This means that if a Big Apple Bagels franchisee dies or becomes permanently disabled, their ownership must be transferred to someone who meets the franchisor's criteria for franchisees.
This provision ensures that the Big Apple Bagels business continues to operate under qualified management even if the original franchisee is no longer able to run the business. The six-month timeframe provides a window for the franchisee's estate or legal representative to find a suitable buyer and complete the transfer process. The franchisor's approval is required to maintain brand standards and ensure the new owner is capable of operating the franchise successfully.
For a prospective Big Apple Bagels franchisee, this clause highlights the importance of succession planning. Franchisees should consider having a plan in place for who could take over the business in case of death or disability. This could involve identifying potential buyers in advance or having a family member or business partner who is willing and able to take over the franchise. It is also important to understand the franchisor's criteria for approving a transfer and to ensure that any potential buyer meets those requirements.
It is important to note that the FDD does not specify the conditions for the approval of a buyer in the event of death or disability, only that the transfer must occur within 6 months. A prospective franchisee should clarify with Big Apple Bagels what specific criteria a buyer must meet to be approved in such a situation.