Under what circumstances is a Big Apple Bagels franchisee required to pay a management fee?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Fee | $250 per day. Subject to increase. | 30 days after billing. | Payable if BAB appoints a manager for the Store when the Store is not being managed by you or a qualified manager. |
Source: Item 6 — OTHER FEES (FDD pages 21–25)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a franchisee may be required to pay a management fee under specific circumstances. This fee is incurred if Big Apple Bagels appoints a manager to oversee the store's operations. This intervention occurs only when the franchisee or a qualified manager is not actively managing the store.
The management fee is set at $250 per day, but the FDD indicates that this amount is subject to increase. This fee is due 30 days after billing, giving the franchisee a short window to remit payment.
This policy ensures that each Big Apple Bagels location maintains a certain standard of operation, even in the absence of direct franchisee or qualified manager oversight. While it protects the brand's reputation, it also introduces a potentially significant cost for franchisees who are unable to manage their stores effectively or find a suitable manager.