Under what circumstances can Big Apple Bagels terminate the Preliminary Agreement with cause?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| f. Termination by Franchisor with cause | Paragraph 5, Signature page | If you fail to sign a Franchise Agreement within 14 days of BAB's approval of your site, BAB may terminate the agreement; if you fail to sign the Preliminary Agreement and pay the deposit within 14 days of the date BAB furnishes you the Preliminary Agreement, BAB’s offer to enter into that Agreement is null and void |
| g. "Cause" defined – | Paragraph 5 | Failure to sign a Franchise Agreement within 14 days of BAB's |
| curable faults | approval of your site | |
| h. "Cause" defined – non- | Paragraph 5 | Failure to sign a Franchise Agreement within 14 days of BAB's |
| curable defaults | approval of your site |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 69–75)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels can terminate the Preliminary Agreement with cause if the franchisee fails to sign a Franchise Agreement within 14 days of Big Apple Bagels' approval of the franchisee's site. Additionally, if the franchisee fails to sign the Preliminary Agreement and pay the deposit within 14 days of the date Big Apple Bagels furnishes the franchisee with the Preliminary Agreement, Big Apple Bagels' offer to enter into that Agreement is null and void.
This means that a prospective Big Apple Bagels franchisee must act swiftly once a site is approved and the Preliminary Agreement is presented. Failing to meet these deadlines gives Big Apple Bagels the right to terminate the agreement. This is a fairly standard practice in franchising, as franchisors need to ensure that franchisees are committed to moving forward in a timely manner.
It is important for potential franchisees to understand these conditions and be prepared to meet the required deadlines. The 14-day window for signing the Franchise Agreement after site approval is relatively short, so franchisees should have their legal and financial affairs in order to avoid delays. Similarly, the 14-day deadline for signing the Preliminary Agreement and paying the deposit underscores the importance of being ready to commit to the franchise opportunity upon receiving the agreement from Big Apple Bagels.