What rights does a Big Apple Bagels franchisee have to acquire additional franchises in other locations?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You have no options, rights of first refusal or similar rights to acquire additional franchises in any other locations.
BAB (on behalf of itself and its affiliates) retains the right, in its sole discretion, without restriction:
You will receive an exclusive territory under the Area Development Agreement so long as you comply with your obligations under that Agreement, including meeting your Development Obligations by opening the required number of Stores. If you fail to meet your obligations, we have the right to terminate your Area Development Agreement. In that event, you will lose the right to open any additional BAGELS Stores. You will also lose exclusive rights to the Exclusive Area described in the Area Development Agreement, and we may thereafter grant franchises for any BAGELS Stores anywhere in said Exclusive Area. You also lose exclusive rights to any wholesale business in the Exclusive Area.
BAB: (1) will grant to Developer franchises for the ownership and operation of BAGELS Stores located within the Protected Development Area; and (2) will not operate (directly or through an affiliate), nor grant to any other franchisee a franchise for the operation of, any BAGELS Store to be located within the Protected Development Area. BAB and its affiliates specifically reserve the right to operate (directly or through an affiliate), or grant to others a nontraditional site.
BAB will approve the sites of future BAB Stores, using its then-current site criteria and standards. You do not receive any territorial designation or protection for your individual Stores.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, franchisees generally do not have rights to acquire additional franchise locations. Under the standard Franchise Agreement, a franchisee is granted the right to operate a Big Apple Bagels store from one specified location only, and this franchise is tied to that specific location, not an area. The FDD explicitly states that franchisees have no options, rights of first refusal, or similar rights to acquire additional franchises in any other locations. This means that if a franchisee wishes to open another Big Apple Bagels location, they would need to apply for a new franchise agreement and there is no guarantee they will be granted one.
However, the FDD outlines an exception to this general rule through an Area Development Agreement. This agreement grants a developer certain rights within a designated geographical area, referred to as the "Protected Development Area." Under this agreement, Big Apple Bagels will grant the developer franchises for the ownership and operation of Big Apple Bagels stores located within the Protected Development Area and will not operate or grant to any other franchisee a franchise for the operation of any Big Apple Bagels store within that area. The size of the Protected Development Area varies based on market potential and Big Apple Bagels's analysis of the developer's financial and operational capabilities.
To maintain these rights under the Area Development Agreement, the developer must comply with their obligations, including meeting the Development Obligations by opening the required number of stores. Failure to meet these obligations gives Big Apple Bagels the right to terminate the Area Development Agreement, which results in the loss of the right to open any additional Big Apple Bagels stores and the exclusive rights to the Protected Development Area. Big Apple Bagels retains the right to grant franchises to others within the previously exclusive area if the developer fails to meet their obligations. This agreement also stipulates that Big Apple Bagels will approve the sites of future Big Apple Bagels stores, using its then-current site criteria and standards, and franchisees do not receive any territorial designation or protection for their individual stores.