What is the transfer fee for a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
(2) Franchisee shall pay to Franchisor prior to transferee attending the required training program a transfer fee of Five Thousand Dollars ($5,000.00), which is not refundable in whole or in part under any circumstances;
(12) if the transferee, prior to his or her initial contact with Franchisee, had contact with Franchisor with respect to a franchise opportunity, Franchisee shall pay Franchisor, in addition to the transfer fee described in Paragraph 14.b.ii.(2) above, a sum equal to ten percent (10%) of the gross sales price relating to the transaction between Franchisee and transferee, but in no event shall such sum be greater than Franchisor's then-current initial Franchise Fee;
(14) the transferee must submit a Store Opening Marketing Fee in the amount of One Thousand Dollars ($1,000), to conduct a "re-Grand Opening," to be expended in the same manner as the Store Opening Marketing Fee described in the Paragraph 3.f. above, except that references to the date the BAGELS Store opens shall be replaced with the date the transferee re-opens the BAGELS Store; and
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).
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a franchisee must pay a $5,000 transfer fee to the franchisor before the transferee attends the required training program. This fee is explicitly stated as non-refundable, regardless of the circumstances.
In addition to the transfer fee, if the transferee had prior contact with Big Apple Bagels regarding a franchise opportunity before contacting the franchisee, the franchisee must pay the franchisor 10% of the gross sales price of the transaction. However, this additional payment will not exceed the then-current initial franchise fee.
Furthermore, the transferee is required to submit a Store Opening Marketing Fee of $1,000 to conduct a "re-Grand Opening." This fee will be spent in the same manner as the standard Store Opening Marketing Fee, but with the focus on the transferee's re-opening date. It's important to note that the standard Store Opening Marketing Fee is $7,500 for a BAGELS Production Store and $3,000 for a BAGELS Satellite Store when establishing a new location, as opposed to purchasing an existing one.