What operating standards must a Big Apple Bagels franchisee meet to be eligible for renewal?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ination of the Franchise Agreement of Franchisee's BAGELS Production Store, unless sooner terminated as provided in Sections 15 and 16 hereof.
b. Renewal.
i. For a BAGELS Production Store Franchise or a BAGELS Satellite Store Franchise, Franchisee may, at his option, renew the Franchise for two additional ten (10) year terms, provided that:
- (a) Franchisee has given Franchisor written notice of his election to renew not less than six (6) months nor more than twelve (12) months prior to the end of the then-current term. An election by Franchisee to renew the lease or sublease for the premises of the Store or to execute a new lease or sublease for such premises shall, at the sole option of Franchisor, be deemed an election by Franchisee to extend the franchise for the initial term of the lease or sublease, plus the term of any options and/or extensions, of such lease or sublease;
- (b) Franchisee is not at such time in material breach of any of his obligations under this Agreement or any other agreement between Franchisee and Franchisor or any of its Affiliates;
- (c) Franchisee has substantially complied with all the terms and conditions of this Agreement and has met the operating and quality standards and procedures prescribed by Franchisor for BAGELS Stores during the Term;
- (d) Franchisee has satisfied all monetary obligations owed to Franchisor, its Affiliates and designated suppliers, and has timely met these obligations throughout the Term;
- (e) Franchisee's store location and lease have been approved by Franchisor;
- (f) Franchisee has agreed to upgrade the Store to Franchisor's thencurrent standards of decor, equipment, and product offerings;
- (g) Franchisee has paid Franchisor the renewal fee of Two Thousand Five Hundred Dollars ($2,500.00);
- (h) Franchisee complies with Franchisor's then-current qualification and training requirements; and
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a franchisee must meet several operating standards to be eligible for renewal. The franchisee must have substantially complied with all terms and conditions of the Franchise Agreement and must have met the operating and quality standards and procedures prescribed by Big Apple Bagels for its stores during the term. This indicates that consistent adherence to the brand's standards is crucial for securing a renewal.
In addition to general compliance, the franchisee must have satisfied all monetary obligations owed to Big Apple Bagels, its affiliates, and designated suppliers, ensuring these obligations were met promptly throughout the term. The store location and lease must also be approved by Big Apple Bagels, suggesting that the franchisor retains control over the physical premises and its suitability for continued operation. Furthermore, the franchisee needs to agree to upgrade the store to Big Apple Bagels' then-current standards of decor, equipment, and product offerings, demonstrating a commitment to keeping the store up-to-date with the brand's evolving image.
Finally, the franchisee must pay a renewal fee of $2,500 and comply with Big Apple Bagels' then-current qualification and training requirements, showing a continued investment in the brand and its standards. The franchisee must also execute a general release, in a form prescribed by Big Apple Bagels, of any claims against the franchisor and its officers, directors, agents, and employees. These conditions collectively ensure that franchisees seeking renewal are fully aligned with Big Apple Bagels' operational standards, financial obligations, and brand image.