Will the royalty fee be greater upon renewal of a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| 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, franchisees in good standing have the option to renew their franchise agreement. While the renewal agreement may contain materially different terms and conditions than the original contract, the royalty fee will not be greater than the royalty fee that Big Apple Bagels imposes on similarly-situated renewing franchisees.
To renew the franchise, a franchisee must pay a renewal fee of $2,500, maintain the premises or secure a substitute premises, remodel, sign a new agreement and other documents, and sign a release. Additionally, the franchisee must agree to upgrade to the then-current standards of decor, equipment, and product offerings.
This indicates that while other terms may change, Big Apple Bagels is committed to not increasing the royalty fee upon renewal compared to other franchisees in similar situations. However, franchisees should be prepared for potential costs associated with upgrades and remodels to meet current brand standards. Franchisees should carefully review the renewal agreement to understand all the updated terms and conditions.