Under what circumstances can a Big Apple Bagels franchisee terminate the Franchise Agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| d. Termination by | Section 15 | Breach by BAB, you in compliance. Additionally, you may terminate |
| Franchisee | the agreement under any grounds permitted by law. |
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| d. Termination by Franchisee | Paragraphs 3.a, 5,a | You may withdraw your application for a franchise during term of agreement You may terminate the agreement under any grounds permitted by law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 69–75)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, a franchisee has the ability to terminate the Franchise Agreement under specific conditions. For the standard Franchise Agreement, the franchisee can terminate if Big Apple Bagels breaches the agreement, provided the franchisee is in compliance. Additionally, the franchisee may terminate the agreement under any grounds permitted by law.
For the Preliminary Agreement, a franchisee can withdraw their application for a franchise during the term of the agreement. They may also terminate the agreement under any grounds permitted by law.
It is important for a prospective Big Apple Bagels franchisee to understand these termination rights, as they provide a degree of protection should the franchisor fail to meet its obligations or if unforeseen legal grounds for termination arise. Franchisees should consult with an attorney to fully understand their rights and obligations under both the Franchise Agreement and Preliminary Agreement, as well as any applicable state laws that may govern termination.