Does Big Apple Bagels require the franchisee to personally manage the store?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BAB requires you to supervise, but not personally manage, the Store. The Store must be directly supervised "on-premises" by a manager, who has completed BAB's training program. The on-premises manager may not have an interest or business relationship with any of BAB's business competitors. The manager is not required to have any amount of equity interest in the franchised business.
The manager must sign a separate written agreement with you incorporating nondisclosure and noncompetition clauses in a form satisfactory to us, including naming BAB as an intended third party beneficiary. An example of an agreement we currently consider satisfactory, including provisions to confirm our ownership of Ideas (as defined in Section 6.c. of the Franchise Agreement) is the Confidentiality and Non-Competition Agreement attached to the Franchise Disclosure Document as Exhibit E. The requirement for the Nondisclosure and Noncompetition Agreement between you and your employees, including the provision that makes BAB an intended third party beneficiary, shall not create an employee or joint employee relationship between BAB and your employees, nor does it constitute control by BAB over your employees' conditions of employment.
If the Franchisee is a corporation, limited liability company (LLC), or partnership, all owners of the corporation, LLC or partnership must agree jointly and severally to guarantee the obligations of Franchisee under the Franchise Agreement, and must sign Rider C to the Franchise Agreement (Guaranty and Assumption of Obligations).
Source: Item 15 — OBLIGATION OF FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 66)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, franchisees are not required to personally manage the store. While franchisees must supervise the store, they can delegate the day-to-day management to a qualified manager who has completed Big Apple Bagels' training program. This manager must supervise the store 'on-premises' and cannot have conflicting interests with Big Apple Bagels' competitors.
This arrangement provides flexibility for franchisees who may not want to be involved in the daily operations. However, the franchisee retains ultimate responsibility for the store's performance and compliance with the franchise agreement. The franchisee must ensure that the manager adheres to Big Apple Bagels' standards and policies.
The manager is required to sign a separate written agreement with the franchisee that includes nondisclosure and noncompetition clauses, with Big Apple Bagels named as a third-party beneficiary. This agreement protects Big Apple Bagels' interests and ensures that the manager is bound by confidentiality and non-competition obligations. This requirement does not create an employee or joint-employee relationship between Big Apple Bagels and the franchisee's employees, nor does it constitute control by Big Apple Bagels over the employee's conditions of employment.
For franchisees who are corporations, LLCs, or partnerships, all owners must jointly and severally guarantee the franchisee's obligations under the Franchise Agreement. This ensures that all owners are fully committed to the success of the Big Apple Bagels franchise and are responsible for upholding the terms of the agreement.