Is the liquidated damages remedy for Big Apple Bagels in addition to other rights and remedies?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the liquidated damages remedy available to the franchisor is in addition to any other rights and remedies they may have under the agreement. This means that if a franchisee breaches the agreement in a way that triggers the liquidated damages clause, Big Apple Bagels can pursue that specific financial compensation without giving up any other legal or contractual options they might have.

The FDD specifies the events that would trigger liquidated damages, including the franchisee terminating the agreement without good cause, Big Apple Bagels terminating the agreement due to the franchisee's material breaches, the franchisee abandoning the store for more than three consecutive days, or the franchisee transferring an interest in the store without complying with the agreement. The amount of liquidated damages is calculated based on a formula that considers the remaining term of the agreement, the store's average gross revenues over a specified period (36 months or the entire operating period if less than 36 months), a percentage of 5%, and a present value factor based on a 4% annual interest rate.

The document also clarifies that these liquidated damages are not considered a penalty but rather a reasonable attempt to estimate damages in situations where the exact amount of actual damages would be difficult to determine. Furthermore, the franchisee is responsible for covering Big Apple Bagels' costs and attorney's fees associated with enforcing the liquidated damages provision. This clause underscores the importance of franchisees adhering to the franchise agreement, as breaches can lead to significant financial liabilities beyond just the liquidated damages themselves.