Can Big Apple Bagels require a franchisee to upgrade the relocated store?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels has the right to require a franchisee to upgrade a relocated store. Specifically, Big Apple Bagels can mandate that the relocated store conform to the franchisor's current image, standards, and specifications for construction and equipment that are in place for all new Big Apple Bagels stores at the time of relocation.

This requirement means that if a franchisee chooses to relocate their Big Apple Bagels store, they may incur additional costs to update the store's design, layout, and equipment to meet the latest brand standards. These costs are the franchisee's sole responsibility. It is important to note that any relocation requires prior written consent from Big Apple Bagels, and the franchisor may charge the franchisee for services rendered in connection with the relocation, including reviewing and approving the new location and the costs for construction drawings.

For a prospective Big Apple Bagels franchisee, this clause highlights the importance of considering potential future costs associated with relocation and upgrades. Franchisees should factor in these potential expenses when evaluating the financial viability of their franchise. Furthermore, franchisees should maintain open communication with Big Apple Bagels regarding any planned relocations to understand the full scope of required upgrades and associated costs.

This type of clause is relatively common in franchising, as franchisors seek to maintain brand consistency and a uniform customer experience across all locations. By requiring upgrades during relocation, Big Apple Bagels aims to ensure that all stores reflect the current brand image and operational standards, which can contribute to overall brand strength and customer satisfaction.