What specific use restriction must be included in the Big Apple Bagels store lease?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ii. Franchisee shall submit the lease for the premises of the Store to Franchisor prior to its execution for Franchisor's examination and approval. The lease for the premises of the Store shall state that the premises shall be used only for a BAGELS Store and contain substantially the following provisions:
"Anything contained in this lease to the contrary notwithstanding, Lessor agrees that, without its consent, this lease and the right, title and interest of the Lessee thereunder, may be assigned by the Lessee to BAB Systems, Inc., an Illinois Corporation, or its designee, provided that said BAB Systems, Inc. or its designee shall execute such documents evidencing its agreement to thereafter keep and perform, or cause to be kept or performed, all of the obligations of the Lessee arising under this lease from and after the time of such assignment."
"Lessor agrees that Lessor shall, upon written request of BAB Systems, Inc., disclose to said corporation, all reports, information or data in Lessor's possession with respect to sales made in, upon or from the leased premises."
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the lease for the premises of the store must explicitly state that the premises will be used only for a Big Apple Bagels store. This restriction ensures that the franchisee operates solely as a Big Apple Bagels outlet at the approved location.
This requirement is crucial for maintaining brand consistency and preventing any unauthorized use of the premises that could dilute the Big Apple Bagels brand. It also protects the franchisor's interests by ensuring that the franchisee does not engage in any activities that are not aligned with the franchise agreement. The franchisor must approve the store location.
Additionally, the lease must include provisions that allow the lease to be assigned to BAB Systems, Inc. or its designee without the lessor's consent, provided that the assignee agrees to fulfill the lessee's obligations. The lease must also state that the lessor will disclose sales information to BAB Systems, Inc. upon written request. These clauses provide Big Apple Bagels with flexibility and access to important operational data.