Is the manager of a Big Apple Bagels franchise required to have any equity interest in the franchised business?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BAB requires you to supervise, but not personally manage, the Store. The Store must be directly supervised "on-premises" by a manager, who has completed BAB's training program. The on-premises manager may not have an interest or business relationship with any of BAB's business competitors. The manager is not required to have any amount of equity interest in the franchised business.
Source: Item 15 — OBLIGATION OF FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 66)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the on-premises manager of a Big Apple Bagels store is not required to have any equity interest in the franchised business. However, Big Apple Bagels requires franchisees to supervise the store, though not necessarily manage it personally. The store must be directly supervised on-premises by a manager who has completed Big Apple Bagels' training program.
This arrangement allows a Big Apple Bagels franchisee flexibility in staffing their store. They can hire a manager without having to offer them ownership in the business. The manager, however, cannot have any interest or business relationship with any of Big Apple Bagels' business competitors.
Furthermore, the manager must sign a separate written agreement with the franchisee that incorporates nondisclosure and noncompetition clauses in a form satisfactory to Big Apple Bagels, naming Big Apple Bagels as an intended third-party beneficiary. This agreement ensures the protection of Big Apple Bagels' interests and confidential information, and adherence to non-competition standards.