Under what circumstances can Big Apple Bagels extend the franchise agreement's term?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ars. In all events, upon renewal, Franchisee shall be obligated to pay Franchisor, as of the Renewal Date, the Renewal Fee set forth in Paragraph 2.b.i.(g).
- v. Franchisor may in its sole discretion extend this Agreement's term for the time period necessary to either give Franchisee reasonable time to correct deficiencies or to give Franchisor adequate time to give notice to Franchisee of Franchisor's refusal to grant a successor franchise as required under this Agreement or under applicable law.
- vi. In the event Franchisee does not execute the Renewal Franchise Agreement after the expiration of the Initial Term, and continues to accept any of the benefits of this Agreement after the expiration of the Initial Term, then at Franchisor's option, this Agreement may be treated either as: (i) expired as of the date of the expiration with Franchisee then operating without a franchise to do so and in violation of Franchisor's right; or (ii) continued on a month-to-month basis (the "Interim Term") until either party provides the
other party with written notice of such party's intention to terminate the Interim Term. In the latter case, all of Franchisee's obligations shall remain in full force and effect during the Interim Term as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Term.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, the franchise agreement's term can be extended under specific circumstances. A Big Apple Bagels franchisee can renew their franchise for two additional ten-year terms if they meet several conditions. These include providing written notice to Big Apple Bagels of their intent to renew at least six months but no more than twelve months before the current term ends.
In addition to providing notice, the franchisee must not be in material breach of the franchise agreement or any other agreement with Big Apple Bagels or its affiliates. They must have also substantially complied with all terms and conditions of the agreement, meeting the operating and quality standards set by Big Apple Bagels. All monetary obligations to Big Apple Bagels, its affiliates, and designated suppliers must be satisfied and met on time throughout the term. The store location and lease must be approved by Big Apple Bagels, and the franchisee must agree to upgrade the store to the franchisor's current standards for decor, equipment, and product offerings. A renewal fee of $2,500.00 must be paid, and the franchisee must comply with the current qualification and training requirements. Finally, the franchisee must execute a general release of any claims against Big Apple Bagels and its officers, directors, agents, and employees.
Big Apple Bagels also has the right to impose an automatic renewal of the agreement for a ten-year term if the franchisee fails to provide written notice of their intent not to renew at least six months before the agreement's expiration date. Furthermore, Big Apple Bagels may extend the agreement's term to allow the franchisee time to correct deficiencies or to provide Big Apple Bagels with adequate time to notify the franchisee of their refusal to grant a successor franchise, as required by the agreement or applicable law.