Can Big Apple Bagels terminate a Franchise Agreement without cause?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| e. Termination by | Not Applicable | BAB cannot terminate your Franchise Agreement without cause |
| Franchisor without cause | ||
| f. Termination by | Section 16 | BAB can terminate only if you commit any 1 of several listed |
| Franchisor with cause | violations | |
| g. "Cause" defined – curable faults | Section 16 | You have 10 days for monetary defaults and failure to maintain required insurance, and 30 days for all defaults not listed in Paragraph 16.a. |
| h. "Cause" defined – non- curable defaults | Section 16 | Failure to submit site within 90 days, failure to open Store in 4 months of possession, failure to complete initial training, abandonment, conviction of felony, unauthorized transfers, unauthorized use or disclosure of confidential information or BAGELS Operations Manual, unauthorized use of Marks, creation of a threat to public health or safety, repeated defaults (even if cured), unapproved transfer upon your death or permanent incapacity, failure to comply with covenants in Paragraph 9.f; termination of other agreement between BAB and you. |
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, Big Apple Bagels cannot terminate a Franchise Agreement without cause. The FDD outlines specific conditions under which Big Apple Bagels can terminate the agreement with cause, such as if the franchisee commits any of several listed violations as detailed in Section 16 of the Franchise Agreement.
Specifically, the document defines "cause" as either curable or non-curable defaults. Curable defaults include monetary defaults and failure to maintain required insurance, for which the franchisee has 10 days to remedy, and 30 days for all other defaults not listed in Paragraph 16.a. Non-curable defaults include failure to submit a site within 90 days, failure to open a store within 4 months of possession, failure to complete initial training, abandonment, conviction of a felony, unauthorized transfers, unauthorized use or disclosure of confidential information or the BAGELS Operations Manual, unauthorized use of Marks, creation of a threat to public health or safety, repeated defaults (even if cured), unapproved transfer upon death or permanent incapacity, failure to comply with covenants in Paragraph 9.f, and termination of other agreements between Big Apple Bagels and the franchisee.
This provision protects franchisees from arbitrary termination, ensuring that Big Apple Bagels must have a legitimate, documented reason to end the franchise agreement. Prospective franchisees should carefully review Section 16 of the Franchise Agreement to fully understand what constitutes cause for termination and the specific conditions under which they could lose their franchise.