Under what conditions can a Big Apple Bagels franchisee relocate their store?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
fee and Marketing Fund Contribution will be based on the Franchisee's average weekly level of Gross Revenues during the one year period prior to closing the first BAGELS Store. Any such relocation shall be at Franchisee's sole expense, and shall not be undertaken without Franchisor's prior written consent. Franchisor shall have the right to charge Franchisee for services Franchisor renders to Franchisee in connection with such relocation, including reimbursement of its costs for reviewing and approving the new location and the costs for construction drawings for the Store at its new location. Franchisor shall also have the right to require Franchisee to upgrade the relocated Store to conform to Franchisor's then current image, standards, and specifications for construction and equipment for all new BAGELS Stores.
- ii. In the event of a relocation of the BAGELS Store, Franchisee shall promptly remove from the former BAGELS Store premises any and all signs, fixtures, furniture, posters, furnishings, equipment, menus, advertising materials, stationery, supplies, forms and other articles which display any of the Marks and distinctive features or designs associated with the System. Any articles which display any of the Marks or any distinctive features or designs associated with the System which are not used by Franchisee at the new BAGELS Store location shall be disposed of by Franchisee as directed by Franchisor following notice to Franchisor to the effect such articles will not
be used at the new BAGELS Store. Furthermore, Franchisee shall, at Franchisee's expense, immediately make such modifications or alterations as may be necessary to distinguish the former BAGELS Store premises so clearly from its former appearance and from other BAGELS Stores so to prevent any possibility of confusion by the public (including, without limitation, removal of all distinctive physical and structural features identifying BAGELS Stores and removal of all distinctive signs and emblems). Franchisee shall, at Franchisee's expense, make such specific additional changes as Franchisor may reasonably request for this purpose. If Franchisee fails to initiate immediately or complete such alterations within such period of time as Franchisor deems appropriate, Franchisee agrees that Franchisor or its designated agents may enter the premises of the former Store and adjacent areas at any time to make such alterations as Franchisor deems appropriate to distinguish Franchisee's former BAGELS Store premises, without liability for trespass. Franchisee expressly acknowledges that failure to make such alterations will cause irreparable injury to Franchisor and hereby consents to entry, at Franchisee's expense, of any ex parte order by any court of competent jurisdiction authorizing Franchisor or its agents to take such action, if Franchisor seeks such an order. Compliance with the foregoing shall be a condition subsequent to Franchisor's approval of any relocation request by Franchisee, and in the event complete de-identification of the former BAGELS Store premises is not properly and completely undertaken, Franchisor may then revoke its permission for relocation and declare a default under this Agreement.
iii. In the event Franchisee loses possession of the BAGELS Store for whatever reason prior to the expiration of the term of this Agreement, Franchisee is required to diligently search for a new location and open and operate the BAGELS Store as promptly as commercially practicable. In the event Franchisee fails to diligently pursue a new location and open a new BAGELS Store, Franchisee shall be liable to Franchisor for Franchisor's lost royalties and other damages for the remainder of the franchise term.
4. TRAINING AND GUIDANCE.
a. Training. Franchisor shall furnish to Franchisee and one additional person designated by Franchisee an initial training program in all phases of the operations of a BAGELS Store, including unit operations, bookkeeping, inventory management, and local Store marketing. Franchisee shall complete the training program to the satisfaction of Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a franchisee can relocate their store, but it is contingent on several conditions and requirements. Relocation can only occur with Big Apple Bagels' prior written consent, and the franchisee will bear all expenses associated with the relocation. Big Apple Bagels has the right to charge the franchisee for services rendered during the relocation process, including covering the costs of reviewing and approving the new location and the construction drawings for the new store.
Big Apple Bagels also has the right to mandate that the relocated store be upgraded to meet the company's current image, standards, and construction and equipment specifications for all new Big Apple Bagels stores. Before relocation, the franchisee must remove all signs, fixtures, furniture, and other branded articles from the former premises. Any branded articles not used at the new location must be disposed of as directed by Big Apple Bagels.
Furthermore, the franchisee is responsible for modifying the former store premises to clearly distinguish it from its previous appearance and other Big Apple Bagels locations to prevent public confusion. If the franchisee fails to make these alterations promptly, Big Apple Bagels may enter the premises to make the necessary changes at the franchisee's expense, potentially seeking a court order to do so. Compliance with these de-identification requirements is a condition for Big Apple Bagels' approval of the relocation, and failure to comply can result in the revocation of permission for relocation and a declaration of default under the Franchise Agreement.
If a Big Apple Bagels franchisee loses possession of their store for any reason before the franchise term expires, they must diligently seek a new location and reopen the store as quickly as commercially practicable. Failure to do so may result in the franchisee being liable to Big Apple Bagels for lost royalties and other damages for the remainder of the franchise term. Until the new location is open, royalty fees and Marketing Fund contributions will be based on the franchisee's average weekly gross revenues during the year before the original store closed.