Does Big Apple Bagels have the right to assign its option to purchase the BAGELS Store?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels has the unrestricted right to assign its option to purchase and assignment of leases separate and apart from the remainder of the Franchise Agreement. This means that if Big Apple Bagels decides to exercise its option to purchase a franchisee's store, it is not obligated to handle the purchase itself. It can transfer this right to another party.

This clause is significant for prospective franchisees because it introduces the possibility of dealing with a third party in the event of a store purchase by Big Apple Bagels. This third party could be another franchisee, an affiliate, or an entirely external entity. The franchisee would need to be prepared to fulfill the terms of the purchase agreement with whomever Big Apple Bagels assigns the option to.

It is important to note that the conditions under which Big Apple Bagels can exercise its option to purchase the store typically involve the expiration or termination of the franchise agreement. The FDD specifies that this option is available if the agreement expires without renewal, is terminated by Big Apple Bagels according to its provisions, or is terminated by the franchisee without cause. The franchisee should carefully review the circumstances under which Big Apple Bagels might exercise this option and the implications of dealing with an assignee.