Can Big Apple Bagels terminate the Preliminary 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 Franchisor with cause | Paragraph 5, Signature page | If you fail to sign a Franchise Agreement within 14 days of BAB's approval of your site, BAB may terminate the agreement; if you fail to sign the Preliminary Agreement and pay the deposit within 14 days of the date BAB furnishes you the Preliminary Agreement, BAB’s offer to enter into that Agreement is null and void |
| g. "Cause" defined – | Paragraph 5 | Failure to sign a Franchise Agreement within 14 days of BAB's |
| curable faults | approval of your site | |
| h. "Cause" defined – non- | Paragraph 5 | Failure to sign a Franchise Agreement within 14 days of BAB's |
| curable defaults | approval of your site |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 69–75)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels cannot terminate the Preliminary Agreement without cause. The FDD outlines specific instances where Big Apple Bagels can terminate the Preliminary Agreement with cause.
Big Apple Bagels can terminate the Preliminary Agreement if the franchisee fails to sign a Franchise Agreement within 14 days of Big Apple Bagels' approval of the franchisee's site. Additionally, if the franchisee fails to sign the Preliminary Agreement and pay the deposit within 14 days of the date Big Apple Bagels furnishes the franchisee the Preliminary Agreement, Big Apple Bagels' offer to enter into that Agreement is null and void.
This is a fairly standard practice in franchising. Franchisors typically reserve the right to terminate preliminary agreements if franchisees fail to meet certain obligations, such as signing the franchise agreement or paying required deposits within a specified timeframe. This protects the franchisor's interests and ensures that only serious and committed candidates proceed further in the franchising process.