Can the Big Apple Bagels management fee increase?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Fee | $250 per day. Subject to increase. | 30 days after billing. | Payable if BAB appoints a manager for the Store when the Store is not being managed by you or a qualified manager. |
Source: Item 6 — OTHER FEES (FDD pages 21–25)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, the management fee is subject to increase. The standard management fee is $250 per day, which is payable if Big Apple Bagels appoints a manager for the store when the franchisee or a qualified manager is not managing the store. This fee is due 30 days after billing.
This means that while the initial management fee is set at $250 per day, Big Apple Bagels retains the right to increase this fee at some point during the franchise agreement. The FDD does not specify the conditions under which the fee may increase or the maximum amount of any potential increase.
Prospective franchisees should inquire with Big Apple Bagels about the circumstances that could lead to an increase in the management fee, how often the fee has been increased in the past, and what the maximum potential fee could be. Understanding these details is crucial for accurate financial planning and risk assessment before investing in a Big Apple Bagels franchise.