Can the management fee for Big Apple Bagels be increased?
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 management fee is $250 per day and 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 be increased or any limitations on the amount of the increase.
Prospective franchisees should consider this when evaluating the potential costs of operating a Big Apple Bagels franchise. It would be prudent to discuss with Big Apple Bagels the circumstances under which the management fee could be increased and whether there are any caps on potential increases to fully understand the financial implications.