Under what condition is the management fee payable to Big Apple Bagels?
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 management fee is payable under specific circumstances. If Big Apple Bagels appoints a manager for a store because the franchisee or a qualified manager is not managing the store, the franchisee will be responsible for paying a management fee.
The management fee is $250 per day and is subject to increase. This fee is due 30 days after billing. This means that if Big Apple Bagels steps in to manage the store due to the absence of suitable management, the franchisee will incur a daily fee to cover the cost of the appointed manager.
This condition highlights the importance of the franchisee's active involvement in the business or ensuring a qualified manager is always in place. Failing to do so can result in additional expenses, impacting the profitability of the Big Apple Bagels franchise. Franchisees should consider this potential cost when planning their business operations and staffing.