What is the purchase price for the signage of a Big Apple Bagels store?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
cessary (in function or quality) to the Store's operation or that Franchisor has not approved as meeting its standards for BAGELS Stores, and the purchase price will reflect these exclusions.Franchisor shall have the unrestricted right to assign this option to purchase and assignment of leases separate
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the purchase price for the signage of a Big Apple Bagels store is specifically set at $100. This price applies when Big Apple Bagels exercises its option to purchase the franchisee's assets upon expiration or termination of the franchise agreement.
This fixed price for signage is notable because the purchase price for the rest of the Big Apple Bagels store's assets is determined by either the Book Value or the Forced Liquidation Value, as decided by Big Apple Bagels. The Book Value is calculated based on the depreciated value of the assets, while the Forced Liquidation Value is determined by a neutral appraiser. This difference in valuation methods highlights that the signage has a predetermined, fixed value in the event of a buyback.
For a prospective franchisee, this means that in the event Big Apple Bagels decides to repurchase the store, the franchisee will receive $100 for the signage, regardless of its actual market value or condition at that time. This could be a financial consideration for franchisees when assessing the potential return on investment and the terms of the franchise agreement, especially concerning the end of the franchise term or potential termination scenarios.