What are the requirements for a Big Apple Bagels franchisee to renew or extend the franchise term?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| a. Length of the franchise | Paragraph 2.a. | 10 years |
| term | ||
| b .Renewal or extension of | Paragraph 2.b. | If you are in good standing, you can renew on the then current terms |
| the term | ||
| c. Requirements for Franchisee to renew or extend | Paragraph 2.b. | Pay renewal fee of $2,500, maintain premises or secure substitute premises, remodel, sign new agreement and other documents and sign release, and agree to upgrade to then-current standards of decor, equipment, and product offerings. The renewal agreement may contain materially different terms and conditions than your original contract, but the royalty fee will not be greater than the royalty fee that we then impose on similarly-situated renewing franchisees |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 69–75)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, a franchisee in good standing has the option to renew their franchise agreement. To do so, the franchisee must meet several conditions. These include paying a renewal fee of $2,500. Additionally, the franchisee must maintain the current premises or secure a suitable substitute location.
Furthermore, the franchisee is required to remodel the premises to meet the then-current standards of decor, equipment, and product offerings. They must also sign a new franchise agreement and other related documents, as well as a release. It is important to note that the terms and conditions of the renewal agreement may differ materially from the original franchise agreement.
However, the royalty fee will not be greater than the royalty fee that Big Apple Bagels then imposes on similarly-situated renewing franchisees. This ensures that while other aspects of the agreement might change, the core financial obligation regarding royalties remains consistent with other franchisees in a similar renewal situation.