How is 'permanent disability' defined for a Big Apple Bagels franchisee?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, a franchisee or the owner of a controlling interest in the franchise is considered to have a "permanent disability" if their usual, active participation in the Big Apple Bagels store is curtailed for a continuous period of three months. This definition is important because it triggers certain provisions within the franchise agreement related to the transfer of interest and the operation of the store.

Specifically, upon such a determination of permanent disability, the franchisee's representative (e.g., executor, administrator, or guardian) is required to transfer the franchisee's interest in the agreement to a third party approved by Big Apple Bagels within six months. Additionally, within 30 days of the disability determination, a manager must be appointed to operate the store, subject to Big Apple Bagels' approval and potential training requirements.

If Big Apple Bagels believes the store is not being managed properly after the disability, they have the right to appoint a temporary manager for up to 30 days, during which the franchisee must either provide additional training to their manager or appoint a new one. Failure to comply with these requirements can result in the termination of the franchise agreement. This definition ensures that the Big Apple Bagels business continues to operate according to the franchisor's standards even if the franchisee becomes unable to manage the business.