Regarding the Big Apple Bagels agreement, is time considered of the essence?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- BAB agrees to expend such time and effort and to incur such expense as may reasonably be required to inspect sites proposed by PROSPECTIVE FRANCHISEE for a BAGELS Store to be operated by PROSPECTIVE FRANCHISEE. Unless PROSPECTIVE FRANCHISEE withdraws his application for a Franchise as hereinafter provided, PROSPECTIVE FRANCHISEE agrees that within fourteen (14) days of approval by BAB of a site for PROSPECTIVE FRANCHISEE's BAGELS Store, PROSPECTIVE FRANCHISEE will execute BAB's Franchise Agreement, in the form delivered to PROSPECTIVE FRANCHISEE. In the event PROSPECTIVE FRANCHISEE fails to execute BAB's Franchise Agreement within said fourteen (14) days, BAB may, at its sole option, terminate this Preliminary Agreement, in which event PROSPECTIVE FRANCHISEE shall not be entitled to any refund of the Deposit.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
Based on the 2025 Big Apple Bagels Franchise Disclosure Document, time is of the essence regarding the execution of the Franchise Agreement after site approval. Specifically, a prospective franchisee has a limited window to finalize the agreement.
According to the FDD, after Big Apple Bagels approves a site for the prospective franchisee's store, the franchisee must execute the Franchise Agreement within fourteen (14) days. If the prospective franchisee fails to meet this deadline, Big Apple Bagels has the option to terminate the Preliminary Agreement.
Should Big Apple Bagels terminate the agreement due to the franchisee's failure to execute the Franchise Agreement within the specified timeframe, the prospective franchisee will not be entitled to a refund of the deposit. This underscores the importance of adhering to the timeline and being prepared to finalize the agreement promptly upon site approval. This clause incentivizes prompt action and protects Big Apple Bagels from potential delays in the franchising process.