What is the purpose of the addendum to the Big Apple Bagels Area Development Agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Addendum is to a BAGELS Area Development Agreement dated BAB Systems, Inc. and | , 20 between (Franchisee) to amend said Agreement as follows: |
|---|---|
| 1. | Paragraph 12.B. of the BAGELS Area Development Agreement on Transfer by Developer shall be |
| amended by the addition of the following language to the original language that appears therein: | |
| 687.5 be satisfied." | "All rights enjoyed by the Franchisee and any causes of action arising in its favor from the provisions of Article 33 of the General Business law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provisions of GBL Section 687.4 and |
| Agreements." | "However, Franchisor shall not assign its rights and obligations to a transferee unless in its reasonable judgment, the transferee is able to fulfill the Franchisor's obligations under its BAGELS Franchise |
| 2. | Paragraph 13.E. of the BAGELS Area Development Agreement on Governing Law shall be |
| amended by the addition of the following language to the original language that appears therein: | |
| by the provisions of Article 33 of the General Business Law of the State of New York." | "The foregoing choice of law shall not be considered a waiver of any right conferred upon the Franchisee |
| understands and consents to be bound by all of its terms, and agrees it shall become effective this | IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum, |
| , 20 | day of |
| Franchisor: | Developer: |
| BAB SYSTEMS, INC. | Corporate/LLC Signature: |
| an Illinois corporation | a corporation/LLC |
| By: | By: |
| Title: Date Accepted: | Title: Date Accepted: Individual Signatures: |
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, the purpose of the addendum is to amend the existing Area Development Agreement between BAB Systems, Inc. and the developer. The addendum modifies specific paragraphs within the original agreement.
Specifically, the addendum alters Paragraph 12.B concerning transfer by the developer. It adds language to the original paragraph, stipulating that the franchisee retains all rights and causes of action arising from Article 33 of the General Business Law of the State of New York, along with its regulations. This addition ensures that the non-waiver provisions of GBL Sections 687.4 and 687.5 remain in effect.
Furthermore, the addendum amends Paragraph 13.E, which pertains to the governing law. The added language specifies that the choice of law does not waive any rights conferred upon the franchisee by Article 33 of the General Business Law of the State of New York. This ensures that the franchisee's rights under New York law are protected, regardless of the governing law specified in the agreement. The addendum also states that Big Apple Bagels cannot transfer its obligations unless the transferee can fulfill them.