Is Big Apple Bagels required to pay separate consideration for the assignment or sublease of the premises?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels is not required to pay separate consideration for the assignment or sublease of the premises. Specifically, the FDD states that no value shall be attributed to the assignment of lease (or sublease) for the premises of the BAGELS Store, and Big Apple Bagels shall not be required to pay any separate consideration for any such assignment or sublease. This applies when the franchisor purchases the franchisee's assets.

This means that if Big Apple Bagels decides to buy back a franchise location, they will not pay extra for the right to take over the existing lease. This could be beneficial for Big Apple Bagels, as it reduces the cost of acquiring existing locations.

For a potential franchisee, this clause primarily comes into play if Big Apple Bagels exercises its right to purchase the store. It ensures that the franchisee will not receive additional compensation for the lease as part of the asset purchase, which could affect the overall valuation of the business during a buy-back scenario. Franchisees should factor this into their long-term financial planning and exit strategy.