If a Big Apple Bagels franchisee has a monetary default, how many days do they have to cure it?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| a. Length of the franchise | Paragraph 2.a. | 10 years |
| term | ||
| b .Renewal or extension of | Paragraph 2.b. | If you are in good standing, you can renew on the then current terms |
| the term | ||
| c. Requirements for Franchisee to renew or extend | Paragraph 2.b. | Pay renewal fee of $2,500, maintain premises or secure substitute premises, remodel, sign new agreement and other documents and sign release, and agree to upgrade to then-current standards of decor, equipment, and product offerings. The renewal agreement may contain materially different terms and conditions than your original contract, but the royalty fee will not be greater than the royalty fee that we then impose on similarly-situated renewing franchisees |
| d. Termination by | Section 15 | Breach by BAB, you in compliance. Additionally, you may terminate |
| Franchisee | the agreement under any grounds permitted by law. | |
| e. Termination by | Not Applicable | BAB cannot terminate your Franchise Agreement without cause |
| Franchisor without cause | ||
| f. Termination by | Section 16 | BAB can terminate only if you commit any 1 of several listed |
| Franchisor with cause | violations | |
| g. "Cause" defined – curable faults | Section 16 | You have 10 days for monetary defaults and failure to maintain required insurance, and 30 days for all defaults not listed in Paragraph 16.a. |
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, a franchisee has a specific timeframe to correct a monetary default. Specifically, if a Big Apple Bagels franchisee fails to meet their financial obligations to the franchisor, they are granted a 10-day period to resolve the outstanding payments or otherwise cure the default.
This 10-day cure period is a critical aspect of the franchise agreement, as it provides the franchisee with an opportunity to rectify the situation and avoid termination of their franchise. It is important to note that this cure period applies specifically to monetary defaults and failure to maintain required insurance. Other types of defaults, as outlined in Paragraph 16.a of the franchise agreement, may be subject to a different cure period of 30 days.
Prospective Big Apple Bagels franchisees should be aware of these cure periods and ensure they have a plan in place to address any potential financial shortfalls promptly. Failing to cure a monetary default within the specified timeframe could lead to the termination of the franchise agreement, resulting in significant financial losses and the loss of the business. Franchisees should also maintain required insurance to avoid default.