What happens if a Big Apple Bagels franchisee is convicted of a felony?

According to the 2025 Big Apple Bagels Franchise Disclosure Document, if a franchisee or any of its owners is convicted of or pleads no contest to a felony, Big Apple Bagels has grounds to terminate the franchise agreement. This also applies if the franchisee or its owners are convicted of or pleads no contest to any crime or offense that is likely to adversely affect the reputation of the BAGELS Store or the goodwill associated with the Marks.

This provision protects Big Apple Bagels' brand and reputation. A felony conviction or any crime that damages the brand's image can have significant financial repercussions for the entire franchise system. Therefore, Big Apple Bagels reserves the right to terminate the agreement to mitigate potential damage.

For a prospective franchisee, this clause underscores the importance of maintaining a clean legal record and ensuring that all owners associated with the franchise do the same. Failure to do so could result in the loss of the franchise and the associated investment. Franchisees should be aware that even actions outside of the business can have serious consequences for their franchise agreement.