What happens if a Big Apple Bagels franchisee's lease terminates without their fault?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
We will approve relocation of your Store if your lease terminates without your fault or expires without any possibility of renewal on commercially reasonable terms as determined by BAB. We will also approve relocation if in our judgment there is a change in the character of your Store location sufficiently detrimental to its business to warrant relocation. You must obtain our prior written approval before opening your new Store. You may not open your new or relocated Store unless our representative is on-site at the opening, unless you request a waiver in writing, and we approve it in writing. Even if we waive the requirement of on-site presence, you must obtain our written authorization of the specific date that the Store may open. In the event of relocation, we and you will enter into an agreement which will set forth the new location for your Store and a deadline by which you must open for business at the new location, after which time you will be obligated to resume paying the royalty fee and Marketing Fund Contributions whether or not the new location has opened for business. Until such time that the new location is open for business, the amount of the royalty fee and Marketing Fund Contribution will be based on your average weekly level of Gross Revenues during the one year period prior to closing the first Store. We have the right to charge you for services we render to you in connection with your relocation, including reimbursement of our costs for reviewing and approving the new location and the construction drawings for the Store at its new location.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, if a franchisee's lease terminates without their fault or expires without the possibility of renewal on commercially reasonable terms, as determined by Big Apple Bagels, the company will approve relocation of the store. Big Apple Bagels will also approve relocation if there is a change in the character of the store location sufficiently detrimental to its business to warrant relocation. The franchisee must obtain prior written approval before opening the new store.
The franchisee may not open the new or relocated store unless a Big Apple Bagels representative is on-site at the opening, unless this requirement is waived in writing by Big Apple Bagels. Even if the on-site presence is waived, written authorization of the specific date the store may open is required. In the event of relocation, the franchisee and Big Apple Bagels will enter into an agreement setting forth the new location and a deadline for opening the new location. After this deadline, the franchisee is obligated to resume paying the royalty fee and Marketing Fund Contributions, whether or not the new location has opened for business.
Until the new location is open, the royalty fee and Marketing Fund Contribution will be based on the average weekly Gross Revenues during the one-year period prior to closing the first store. Big Apple Bagels has the right to charge the franchisee for services rendered in connection with the relocation, including reimbursement of costs for reviewing and approving the new location and the construction drawings for the store at its new location. This means that franchisees may incur additional expenses related to relocation, and their financial obligations to Big Apple Bagels continue even if the store is temporarily closed during the relocation process.