Under what agreement does Big Apple Bagels grant area development rights?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BAB, under its standard Area Development Agreement (the "Area Development Agreement"), also grants to certain qualified persons ("Developers") the right, subject to certain terms and conditions, to develop and operate BAGELS Stores within defined geographical areas.
A Developer is obligated to open certain cumulative numbers of BAGELS Production Stores and/or BAGELS Satellite Stores ("Minimum Development Quota") over a number of development
periods, each of which is approximately 6 months in duration ("Development Periods"). Minimum Development Quota and Development Periods are determined by BAB and the Developer on the basis of the market potential, size of the designated area, and through an analysis of the financial and operational capabilities of Developer. With respect to each BAGELS Production Store and BAGELS Satellite Store opened by Developer in his designated area, Developer must sign BAB's then current form of Franchise Agreement, which may differ from the current Franchise Agreement included in this disclosure document. The amount of the initial franchise fee will be described in Item 5, and will not be subject to increase. Subject to certain terms and conditions, Developer's right to own and operate Stores within the designated area is exclusive so long as the Area Development Agreement is in effect.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATE (FDD pages 10–15)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, area development rights are granted under its standard Area Development Agreement. This agreement allows qualified individuals, referred to as "Developers," the right to develop and operate Big Apple Bagels stores within specific geographical areas, subject to certain terms and conditions.
Under the Area Development Agreement, a Developer is obligated to open a predetermined number of Big Apple Bagels Production Stores and/or Big Apple Bagels Satellite Stores, known as the "Minimum Development Quota," within specified timeframes called "Development Periods." These Development Periods are approximately six months in duration. The Minimum Development Quota and Development Periods are determined by Big Apple Bagels in collaboration with the Developer, considering factors such as market potential, the size of the designated area, and the Developer's financial and operational capabilities.
For each Big Apple Bagels Production Store and Big Apple Bagels Satellite Store opened within the designated area, the Developer must sign Big Apple Bagels' current form of Franchise Agreement. It's important to note that this Franchise Agreement may differ from the one included in the Franchise Disclosure Document. The initial franchise fee amount will be detailed in Item 5 of the FDD and will not be subject to increase. Subject to specific terms and conditions, the Developer's right to own and operate stores within the designated area is exclusive, as long as the Area Development Agreement remains in effect.