Are there any restrictions on Big Apple Bagels' right to assign the franchise contract?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| j. Assignment of contract | Paragraph 14.a. | No restrictions on BAB's right to assign |
| by Franchisor |
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, there are no restrictions on Big Apple Bagels' right to assign the franchise agreement. This means Big Apple Bagels has the freedom to transfer its rights and obligations under the franchise agreement to another party without needing the franchisee's consent or meeting specific conditions.
For a prospective franchisee, this signifies that the entity they initially contracted with may change during the term of the agreement. The new entity would then assume the responsibilities of the franchisor. While this is permitted, the franchisee's rights under the original agreement should remain intact unless otherwise specified in the agreement itself.
It is important for a potential Big Apple Bagels franchisee to carefully review the entire franchise agreement to understand the full scope of their rights and obligations, as well as Big Apple Bagels' rights, in case of an assignment. Understanding the circumstances under which Big Apple Bagels might assign the agreement, and what recourse the franchisee has, is crucial for protecting their investment and business interests.