Under what circumstances can Big Apple Bagels impose an automatic renewal of the franchise agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee fails to give Franchisor at least six (6) months' notice of its intent not to renew, notwithstanding anything to the contrary contained in this Agreement, Franchisor has the right to impose an automatic renewal of this Agreement, effective on this Agreement's scheduled expiration date ("Renewal Date"), for a renewal term of ten (10) years.
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).
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels has the right to impose an automatic renewal of the franchise agreement under specific conditions. If a franchisee fails to provide written notice of their intent not to renew the franchise at least six months prior to the expiration date of the agreement, Big Apple Bagels can impose an automatic renewal.
This automatic renewal is effective on the agreement's scheduled expiration date and extends the term for ten years. This clause is in effect regardless of any other contradictory information within the franchise agreement.
Upon this automatic renewal, the franchisee is obligated to pay Big Apple Bagels the renewal fee, as outlined in Paragraph 2.b.i.(g) of the agreement. This provision underscores the importance of franchisees adhering to the notification deadlines to avoid an unwanted renewal and associated costs.