What specific actions are required for a Big Apple Bagels franchisee to renew their franchise agreement?
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, specifically Item 17, a franchisee must fulfill several requirements to renew their franchise agreement. These stipulations ensure that the franchisee remains compliant and that the Big Apple Bagels brand maintains its standards.
To renew, a franchisee must be in good standing with Big Apple Bagels. Additionally, they are required to pay a renewal fee of $2,500. The franchisee must also maintain their current premises or secure a substitute location that meets Big Apple Bagels's approval. Furthermore, franchisees need to remodel their existing store to meet the current brand standards for decor, equipment, and product offerings.
Finally, the franchisee must sign a new franchise agreement and other related documents, including a release of claims. It's important to note that the terms and conditions of the renewal agreement may differ significantly 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 royalty structure remains competitive and fair compared to other franchisees in similar situations.