Are there any pending actions against Big Apple Bagels, other than routine litigation, that are significant?

According to the 2025 Big Apple Bagels Franchise Disclosure Document, Item 3 regarding litigation is amended for the state of California. The amendment states that neither Big Apple Bagels, nor any person or franchise broker in Item 2 of the FDD is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in such association or exchange.

This addendum for California franchisees clarifies that Big Apple Bagels and its representatives are not under any current orders from national securities associations or exchanges that would prevent them from operating. This provides some assurance to potential franchisees in California that the company is in good standing with these regulatory bodies.

It is important for prospective franchisees to carefully review Item 3 of the FDD and this California addendum to understand the full scope of any past or pending litigation involving Big Apple Bagels. While this addendum addresses securities-related orders, it does not provide details on other types of litigation. Franchisees should consult with legal counsel to fully assess any potential risks associated with litigation involving the franchisor.