Under what circumstances related to the control person can the Big Apple Bagels agreement be terminated?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignment permitting the COMPANY, at its sole option, to terminate the AGREEMENT; provided, however, that in the event of death or disability of the control person that the provisions of Section 14.c of the Franchise Agreement and Section 12.B of the Area Development Agreement shall control to the same extent as if the control person were the franchisee under the AGREEMENT.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the agreement can be terminated under specific circumstances related to the control person. The company has the option to terminate the agreement, but in the event of the death or disability of the control person, the provisions outlined in Section 14.c of the Franchise Agreement and Section 12.B of the Area Development Agreement will take precedence. These sections will be applied as if the control person were the franchisee.
In the event of death or permanent disability, the executor, administrator, conservator, guardian, or other personal representative is required to transfer the interest in the agreement and the franchise to a third party approved by Big Apple Bagels within six months. Failure to transfer the interest within this timeframe constitutes a breach of the agreement.
Additionally, upon the death or permanent disability of the control person, a manager must be appointed to operate the Big Apple Bagels store within 30 days. This manager is subject to the franchisor's approval and may be required to complete the franchisor's training program. If Big Apple Bagels determines that the store is not being managed properly, they have the right to appoint a manager for up to 30 days, during which the franchisee must either provide additional training to their manager or appoint a new one. Failure to do so may result in the termination of the agreement.