Is there a minimum territory granted to a Big Apple Bagels franchisee?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We may establish other franchised or company owned locations that may compete with your location.
You are granted the right to operate a BAGELS Store from 1 specified location only. Your franchise is for a specific location, and not for an area approved by us. There is no minimum territory granted to you.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, franchisees do not receive a minimum territory under the standard Franchise Agreement. The FDD states, "There is no minimum territory granted to you." This means a franchisee's location can face competition from other franchisees, company-owned outlets, or other distribution channels controlled by Big Apple Bagels. Big Apple Bagels retains the right to establish other franchised or company-owned locations that may compete with a franchisee's location.
A Big Apple Bagels franchisee's rights are limited to operating a store from one specified location only, as the franchise is granted for a specific location and not an area. While franchisees do not receive a protected territory, Big Apple Bagels will approve relocation of a store if the lease terminates without fault or expires without renewal possibilities on commercially reasonable terms. Relocation is also possible if there is a detrimental change in the character of the store location.
However, the 2025 FDD indicates that an Area Development Agreement does grant an exclusive territory, referred to as the "Protected Development Area," provided the developer meets their obligations, including opening the required number of stores. The size of this area varies based on market potential and Big Apple Bagels's assessment of the developer's capabilities. If the developer fails to meet their obligations, they lose the exclusive rights to the Protected Development Area, and Big Apple Bagels may grant franchises to others within that area.
Big Apple Bagels also retains the right to sell branded products via the Internet from company-owned locations, regardless of customer location. Furthermore, Big Apple Bagels can operate or franchise stores at any location and through any distribution channels they deem appropriate, even within a franchisee's territory, without compensation to the franchisee. This includes sales through the Internet, catalog sales, telemarketing, or other direct marketing sales. Prospective franchisees should carefully consider these competitive factors and the terms of the Area Development Agreement if seeking territorial exclusivity.