Is Big Apple Bagels liable to a franchisee if it grants a waiver, approval, or consent?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchisor's approval of a lease or sublease for a franchisee's store site does not create any warranty or representation about its fairness, suitability, or profitability. This means that Big Apple Bagels is not liable if the franchisee's chosen location, approved by them, turns out to be a poor business decision.

This clause protects Big Apple Bagels from potential lawsuits or claims by franchisees who might argue that the franchisor's approval of the site implied a guarantee of success. It is the franchisee's responsibility to assess the location thoroughly and ensure it meets their business needs and financial expectations.

This type of disclaimer is common in franchising. Franchisors typically provide guidance and approval on site selection, but the ultimate responsibility for the site's performance rests with the franchisee. Prospective Big Apple Bagels franchisees should conduct their own due diligence, including market research and financial projections, before committing to a specific location.

The FDD also states that Big Apple Bagels may unilaterally waive or reduce any obligation of or restriction upon the other under the Franchise Agreement, effective upon delivery of written notice. This allows Big Apple Bagels flexibility in adjusting requirements for individual franchisees, but it does not explicitly address liability resulting from such waivers. Franchisees should seek clarification on the potential implications of any waivers granted and how they might affect their rights and obligations under the agreement.