Under what conditions can a Big Apple Bagels franchisee renew their franchise agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
- Item 17 of the Franchise Disclosure Document on "Renewal, Termination, Transfer and Dispute Resolution" is amended by the addition of the following:
California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or nonrenewal of a franchise. If the BAGELS Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
Illinois law governs the BAGELS Franchise Agreements.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a BAGELS Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a BAGELS Franchise Agreement may provide for arbitration to take place outside of Illinois.
Franchisee's rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
Based on the 2025 Big Apple Bagels Franchise Disclosure Document, specific conditions for franchise agreement renewal are not detailed in the provided excerpts. However, Item 23 includes addenda related to franchise agreements in certain states that may address renewal rights.
For example, the addendum for California notes that California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or nonrenewal of a franchise, and that if the Big Apple Bagels Franchise Agreement contains a provision that is inconsistent with the law, the law will control. Similarly, for Illinois, franchisee's rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Prospective franchisees should carefully review Item 17 within the FDD, titled "Renewal, Termination, Transfer and Dispute Resolution," to understand the complete terms and conditions for renewal. Additionally, they should consult with legal counsel to understand how state laws may impact their renewal rights, especially in states like California, Illinois and Washington, where specific statutes are mentioned that could supersede the franchise agreement. It is important to ask the franchisor directly about the specific conditions and criteria required for renewal to make an informed decision.