Is the initial franchise fee for a Big Apple Bagels Satellite Store refundable?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the initial franchise fee for a BAGELS Satellite Store is generally non-refundable. Item 7 states, "None of the payments in the above table are refundable." This means that the standard $15,000 initial franchise fee for a BAGELS Satellite Store, or the $10,000 fee under an Area Development Agreement, is not refundable once paid to Big Apple Bagels.

However, there is an exception if you enter into a Preliminary Agreement and pay a deposit. If you submit at least one site to Big Apple Bagels within 60 days, but the site is not approved, Big Apple Bagels will refund all but $3,000 of the $10,000 deposit. If you fail to submit even one site within 60 days, you will not receive any refund of the deposit. If a site is approved within 60 days, but you fail to sign a Franchise Agreement within 14 days of approval, Big Apple Bagels may terminate the Preliminary Agreement, and you will not be entitled to any refund of the $10,000 deposit.

Prospective franchisees should carefully consider these conditions and the implications of the Preliminary Agreement before paying any deposits to Big Apple Bagels. It is important to understand the circumstances under which a refund, or partial refund, is possible, and what actions could result in forfeiting the entire deposit. Consulting with a business advisor or attorney is recommended to fully understand the terms and conditions.