Are there any circumstances under which Big Apple Bagels is required to grant a waiver to a franchisee?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
s receipt of notice thereof from Franchisor. All other refurbishing shall be completed within twelve (12) months of Franchisee's receipt of notice thereof from Franchisor.
- e. Store Opening. Franchisee shall complete development of the BAGELS Store, obtain all licenses required by Franchisor for the operation of the BAGELS Store and have the BAGELS Store ready to open and commence the conduct of its business by the earlier of
- i. six (6) months after Franchisee obtains possession of such site or
- ii. six (6) months from the date of this Agreement if Franchisee has possession of such site on the date hereof, or
- iii. twelve (12) months from the date of this Agreement.
If Franchisee fails to commence the conduct of business by the deadline set forth above in this Subparagraph 3.e., then this Agreement and the Franchise granted hereby may, at the sole option of Franchisor, be terminated upon the giving of written notice to Franchisee by Franchisor. A new BAGELS Store may not open for business without the prior written approval of Franchisor. Franchisee may not open a new or relocated BAGELS Store without the on-site presence of Franchisor's representative, unless a waiver is requested in writing by Franchisee and approved in writing by Franchisor. Even if the aforementioned request and approval are granted, Franchisee must obtain Franchisor's written authorization, in its sole discretion, of the specific date that the Store may open. For a BAGELS Store that had been closed by a franchisee and is being reopened by a new franchisee (for example, in a transfer), Franchisor's written approval is required prior to the reopening of the BAGELS Store. The reopening of a previously-closed BAGELS Store may or may not, at Franchisor's sole option, include an on-site inspection by a representative of BAB.
f. Store Opening Marketing Fee. Upon execution of this Agreement, Franchisee shall deposit with the Franchisor a non-refundable Store Opening Marketing Fee in the amount of Seven Thousand Five Hundred Dollars ($7,500) if Franchisee is establishing a BAGELS Production Store. If Franchisee is establishing a BAGELS Satellite Store the Store Opening Marketing Fee will be Three Thousand Dollars ($3,000.00). Franchisor shall expend the Store Opening Marketing Fee in connection with the grand opening of Franchisee's BAGELS Store, as well as for local advertising for the BAGELS Store during the initial few months of operation. If Franchisee is purchasing an existing BAGELS Store (transfer), the Store Opening Marketing Fee is One Thousand Dollars ($1,000).
g. Relocation of Store.
- i. If Franchisee's lease for the premise of the BAGELS Store terminates without fault of Franchisee, or expires without any possibility of renewal by Franchisee on commercially reasonable terms as determined by Franchisor, or if in the judgment of Franchisor and Franchisee there is a change in the character of the location of the BAGELS Store sufficiently detrimental to its business potential to warrant its relocation, Franchisor shall grant permission for relocation of the BAGELS Store to a location approved by Franchisor. Franchisee may not open a relocated BAGELS Store without the on-site presence of Franchisor's representative, unless a waiver is requested in writing by Franchisee and approved in writing by Franchisor. Even if the aforementioned request and approval are granted, Franchisee must obtain Franchisor's written authorization, in its sole discretion, of the specific date that the Store may open.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels is never required to grant a waiver. However, Big Apple Bagels may grant a waiver under certain circumstances. Specifically, a franchisee may request a waiver in writing to operate a new Big Apple Bagels store or a relocated store without the on-site presence of a Big Apple Bagels representative. However, Big Apple Bagels has sole discretion over whether to approve this waiver.
Even if Big Apple Bagels approves the waiver for the on-site representative, the franchisee must still obtain written authorization from Big Apple Bagels regarding the specific date the store can open. This highlights that even with a waiver for the representative's presence, Big Apple Bagels retains control over key aspects of the store opening.
Big Apple Bagels and the franchisee can also unilaterally waive or reduce any obligation of or restriction upon the other under the agreement via written instrument. However, any waiver granted by Big Apple Bagels is without prejudice to any other rights Big Apple Bagels may have, will be subject to continuing review by Big Apple Bagels and may be revoked, in Big Apple Bagels' sole discretion, at any time and for any reason, effective upon delivery to franchisee of ten (10) days' prior written notice.