Are a prospective franchisee's rights under the Big Apple Bagels Preliminary Agreement transferable?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, a prospective franchisee's rights under the Preliminary Agreement are explicitly not transferable. The FDD states that these rights are personal and cannot be transferred through assignment, will, or by operation of law. This means that the individual or entity entering into the Preliminary Agreement with Big Apple Bagels is the only party who can exercise those rights.

This restriction has significant implications for potential Big Apple Bagels franchisees. It prevents them from selling or assigning their rights under the Preliminary Agreement to another party, even if unforeseen circumstances arise. For instance, if a prospective franchisee becomes unable to proceed with the franchise, they cannot simply transfer their rights to someone else who might be interested.

This non-transferability clause is relatively common in franchise agreements, as franchisors like Big Apple Bagels typically want to carefully control who they grant franchises to. This ensures that all franchisees meet their standards and are a good fit for the brand. Prospective franchisees should carefully consider this limitation and ensure they are fully committed before entering into the Preliminary Agreement with Big Apple Bagels.