What is Big Apple Bagels' obligation if BAB requires a change to the Marks?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BAB has the right to require you to use new marks and to discontinue or modify your use of any name or commercial symbol. If it becomes advisable at any time, in BAB's sole discretion, for BAB and/or you to modify or discontinue use of any Mark and/or use 1 or more additional or substitute trademarks or service marks, you agree to do so within a reasonable time after notice by BAB. In the event BAB requires you to discontinue the use of any name or commercial symbol and
to use a substitute mark or commercial symbol, BAB's sole obligation will be to reimburse you your out-of-pocket expenses of complying with this obligation.
Source: Item 13 — TRADEMARKS (FDD pages 57–64)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels has the right to require franchisees to use new marks and to discontinue or modify the use of any name or commercial symbol. Franchisees must comply within a reasonable time after receiving notice from Big Apple Bagels.
If Big Apple Bagels requires a franchisee to discontinue using any name or commercial symbol and to use a substitute mark or commercial symbol, Big Apple Bagels' sole obligation is to reimburse the franchisee for their out-of-pocket expenses of complying with this obligation. This means that while the franchisee is responsible for making the required changes, Big Apple Bagels will cover the direct costs associated with implementing those changes.
This obligation is limited to the franchisee's out-of-pocket expenses. It does not extend to covering any consequential damages, such as loss of revenue or profits, that the franchisee might experience as a result of the change. Prospective franchisees should consider this financial responsibility when evaluating the franchise opportunity, as rebranding or changes to commercial symbols can sometimes be costly and impact business operations.