For Big Apple Bagels in Maryland, what is the title of Exhibit R?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit O Transferee's Waiver and Release (applies only if you are buying a BAGELS Store from an existing franchisee)
Exhibit R State Addenda (if applicable)
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Exhibit R is titled "State Addenda (if applicable)". This exhibit is relevant if there are specific addenda to the franchise agreement required by the state in which the franchise is located. For a Big Apple Bagels franchise in Maryland, this addendum would contain modifications to the standard franchise agreement to comply with Maryland franchise law.
Prospective franchisees should carefully review Exhibit R, if applicable to their state, with a franchise attorney to understand any state-specific regulations that may impact their franchise agreement. These addenda often address areas such as dispute resolution, termination rights, and waivers, ensuring that the franchise agreement complies with local laws.
In the case of Maryland, the FDD includes "EXHIBIT R BAB SYSTEMS, INC. ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MARYLAND" and "EXHIBIT R BAB SYSTEMS, INC. ADDENDUM TO THE BAGELS FRANCHISE AGREEMENT FOR THE STATE OF MARYLAND". These addenda modify Item 17 regarding renewal, termination, transfer, and dispute resolution, specifying that the general release required for renewal or transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. It also clarifies that franchisees can bring lawsuits in Maryland for claims arising under this law, with a three-year statute of limitations from the franchise grant. Additionally, the provision allowing termination upon franchisee bankruptcy may not be enforceable under federal bankruptcy law.