What standards must a Big Apple Bagels franchisee agree to upgrade to upon renewal?
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, to renew a franchise agreement, a franchisee must agree to upgrade to the then-current standards of decor, equipment, and product offerings. This requirement ensures that all Big Apple Bagels locations maintain a consistent and up-to-date brand image, which is common practice in franchising to preserve brand standards and customer expectations.
In addition to upgrading to the current standards, the franchisee must also pay a renewal fee of $2,500, maintain the premises or secure a substitute premises, remodel the location, sign a new agreement and other documents, and sign a release. The renewal agreement may contain materially different terms and conditions than the original contract. However, the royalty fee will not be greater than the royalty fee that Big Apple Bagels imposes on similarly-situated renewing franchisees.
These renewal conditions are typical in franchise agreements, as they allow the franchisor to update the terms and conditions to reflect current business practices and market conditions. The upgrade requirement ensures that the franchise remains competitive and aligned with the brand's overall strategy. Franchisees should carefully review the renewal agreement to understand any changes in terms and conditions and budget for the required upgrades and fees.