Who are the permissible parties to an arbitration proceeding involving the Big Apple Bagels franchise?

Based on the 2025 Big Apple Bagels Franchise Disclosure Document, the agreement is binding upon the parties involved and their respective executors, administrators, heirs, assigns, and successors in interest. This indicates that if a dispute arises that leads to arbitration, the original parties to the franchise agreement (the franchisee and franchisor) are bound by the arbitration terms. Additionally, the agreement extends to those who inherit the business or to whom the rights and obligations are transferred.

This "binding effect" clause means that if the franchisee dies, their estate would be subject to the arbitration agreement. Similarly, if the franchisee sells the business to a new owner, that new owner would also be bound by the arbitration agreement. This ensures continuity and clarity in resolving disputes, as it clarifies who must participate in arbitration, even if the original franchisee is no longer directly involved.

It is important for a prospective Big Apple Bagels franchisee to understand that this clause has significant implications for the future. If they plan to pass the franchise on to their children or sell it to someone else, those individuals will also be required to resolve disputes through arbitration, as specified in the franchise agreement. Franchisees should seek legal counsel to fully understand the implications of this clause before signing the agreement.