Can Big Apple Bagels modify the standard form of the Franchise Agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Franchise Agreement. "Franchise Agreement" shall mean the then current form of agreements (including without limitation, franchise agreement and any exhibits, riders, subleases or collateral assignments of leases or subleases, shareholder guarantees and preliminary agreements
used in connection therewith) customarily used by Franchisor in the granting of a franchise for the ownership and operation of a BAGELS Store except the initial franchise fee shall be as set forth in Paragraph 6.B. below. Attached to Franchisor's Franchise Disclosure Document is a copy of the current form of Franchise Agreement. DEVELOPER ACKNOWLEDGES THAT THE AGREEMENT ATTACHED TO FRANCHISOR'S FRANCHISE DISCLOSURE DOCUMENT IS THE CURRENT FORM OF FRANCHISE AGREEMENT AND THAT FRANCHISOR, AT ITS SOLE DISCRETION BUT SUBJECT TO THE EXPRESS PROVISIONS CONTAINED HEREIN, MAY FROM TIME TO TIME MODIFY OR AMEND IN ANY RESPECT THE STANDARD FORM OF FRANCHISE AGREEMENT CUSTOMARILY USED IN GRANTING A "BAGELS STORE" FRANCHISE.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels has the authority to modify or amend the standard form of the franchise agreement. However, this ability is subject to the express provisions outlined in the agreement. This means that while Big Apple Bagels can make changes, they must adhere to any specific limitations or conditions already established within the franchise agreement itself.
For a prospective franchisee, this clause indicates that the initial franchise agreement presented is not necessarily set in stone. Big Apple Bagels retains the right to alter the agreement's terms and conditions over time. This could impact various aspects of the franchise operation, including fees, operational standards, and territorial rights.
It is important for potential franchisees to carefully review the franchise agreement and any associated exhibits to understand the full scope of Big Apple Bagels' modification rights and any limitations that may exist. Furthermore, prospective franchisees should seek legal counsel to assess the potential implications of these modification rights and negotiate for terms that protect their interests.