Under what conditions can a Big Apple Bagels franchisee renew or extend the franchise term?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| a. Length of the franchise | Paragraph 2.a. | 10 years |
| term | ||
| b .Renewal or extension of | Paragraph 2.b. | If you are in good standing, you can renew on the then current terms |
| the term | ||
| c. Requirements for Franchisee to renew or extend | Paragraph 2.b. | Pay renewal fee of $2,500, maintain premises or secure substitute premises, remodel, sign new agreement and other documents and sign release, and agree to upgrade to then-current standards of decor, equipment, and product offerings. The renewal agreement may contain materially different terms and conditions than your original contract, but the royalty fee will not be greater than the royalty fee that we then impose on similarly-situated renewing franchisees |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 69–75)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, a franchisee in good standing has the option to renew their franchise agreement. The initial franchise term is 10 years, as detailed in Paragraph 2.a of the Franchise Agreement. To renew, Paragraph 2.b specifies several requirements.
The franchisee must pay a renewal fee of $2,500. They need to maintain their current premises or secure a suitable substitute location. Remodeling of the premises is required to meet the then-current standards for decor, equipment, and product offerings. Additionally, the franchisee must sign a new franchise agreement and other necessary documents, including a release.
It’s important to note that the renewal agreement may contain terms and conditions that are materially different from the original franchise agreement. However, the royalty fee will not be greater than the royalty fee that Big Apple Bagels then imposes on similarly-situated renewing franchisees. This ensures some consistency in royalty obligations for renewing franchisees, but other aspects of the agreement could change significantly.