What outstanding debts and obligations must a Big Apple Bagels franchisee pay before transferring the franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
prior to transferee attending the required training program a transfer fee of Five Thousand Dollars ($5,000.00), which is not refundable in whole or in part under any circumstances;
- (3) the assignee, transferee or purchaser shall not be engaged in any activity which would be prohibited by Paragraph 9.f. of this Agreement;
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 specific financial obligations before transferring their franchise. The franchisee must pay all outstanding debts and obligations to Big Apple Bagels and its affiliates. This includes royalty fees, amounts due to the Marketing Fund, and any amounts owed to designated suppliers.
In addition to settling outstanding debts, the franchisee must also pay a transfer fee of $5,000 to Big Apple Bagels before the transferee attends the required training program. This transfer fee is non-refundable, regardless of the circumstances of the transfer. The franchisee must also ensure that the proposed transferee meets Big Apple Bagels' standards for financial responsibility, moral character, and suitability as an operator.
These conditions ensure that Big Apple Bagels maintains financial stability and quality control over its franchise system. By requiring franchisees to settle all outstanding debts and ensuring the transferee's financial viability, Big Apple Bagels minimizes the risk of financial loss and operational disruption during the transfer process. The non-refundable transfer fee compensates Big Apple Bagels for the administrative and training costs associated with the transfer.