For Big Apple Bagels in Maryland, who are the parties to the BAGELS Franchise Agreement?

According to the 2025 Big Apple Bagels FDD, the parties to the BAGELS Franchise Agreement in Maryland are BAB Systems, Inc. and the franchisee. This is specified in Exhibit R, which is an addendum to the BAGELS Franchise Agreement for the state of Maryland. This addendum modifies certain sections of the standard agreement to comply with Maryland franchise law.

Specifically, the addendum addresses aspects such as renewal, termination, transfer, dispute resolution, and marketing practices within the state. It includes stipulations that protect the franchisee's rights under the Maryland Franchise Registration and Disclosure Law, ensuring that the franchisee can bring lawsuits in Maryland for claims arising under this law, and that the general release required as a condition of renewal or transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law.

Furthermore, the addendum clarifies that the termination of the agreement due to the franchisee's bankruptcy may not be enforceable under federal bankruptcy law. It also ensures that Big Apple Bagels will provide the franchisee with an annual accounting of advertising fees collected. These modifications are crucial for any prospective franchisee in Maryland to understand their rights and obligations under the franchise agreement within the legal framework of the state.