According to the 2025 Big Apple Bagels Franchise Disclosure Document, the Preliminary Agreement is included as an exhibit. Specifically, there is a "WASHINGTON ADDENDUM TO THE BAGELS PRELIMINARY AGREEMENT, DISCLOSURE ACKNOWLEDGMENT STATEMENT, AND RELATED AGREEMENTS" listed as Exhibit R. This indicates that the Preliminary Agreement, along with other related documents, is part of the exhibits in the FDD, at least for franchisees in Washington.

This inclusion is significant for prospective Big Apple Bagels franchisees in Washington because it means they will receive specific information and disclosures related to the Preliminary Agreement as part of the FDD. The addendum addresses how Washington state law may supersede the Preliminary Agreement, particularly in areas like termination and renewal of the franchise. It also clarifies the venue for arbitration and litigation related to franchise sales or violations of the Washington Franchise Investment Protection Act.

Furthermore, the addendum emphasizes that franchisees cannot waive their rights under the Washington Franchise Investment Protection Act unless it's part of a negotiated settlement with independent counsel. It also addresses the enforceability of non-competition covenants against employees and independent contractors of the franchisee, based on their earnings. This level of detail ensures that potential franchisees in Washington are well-informed about their rights and obligations under both the franchise agreement and state law.

For prospective franchisees outside of Washington, it's important to note that addenda to the Preliminary Agreement may vary by state. Therefore, they should carefully review Exhibit R and any other state-specific addenda included in their FDD to understand how local laws may affect the terms of the Preliminary Agreement and their rights as franchisees.