Under what conditions can the Exclusive Area for a Big Apple Bagels franchise be replaced?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Exclusive Area. "Exclusive Area" shall mean the geographical area described in Rider A, attached hereto and incorporated herein by reference. The Exclusive Area as described in Rider A may be, at the request of Developer, replaced with another area deemed available for development by Franchisor in its sole judgment. In such event, Rider A shall be amended to describe the substituted area and all development rights and exclusivity granted hereunder for the original area defined on Rider A will terminate and shall be extended to the new Exclusive Area.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the Exclusive Area granted to a developer, as described in Rider A of the agreement, can be replaced under specific conditions. At the developer's request, Big Apple Bagels may, in its sole judgment, replace the Exclusive Area with another area available for development.
If Big Apple Bagels approves the substitution, Rider A will be amended to reflect the new area. Upon this amendment, all development rights and exclusivity previously granted for the original area will terminate. These rights and exclusivity will then be extended to the newly designated Exclusive Area.
This clause provides flexibility for both the developer and Big Apple Bagels, allowing for adjustments to the territory based on market conditions or the developer's strategic interests. However, it's important for prospective developers to understand that the final decision rests with Big Apple Bagels, and any existing rights in the original area are forfeited upon the substitution.