Under what conditions can a Big Apple Bagels franchisee renew their 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 has the option to renew their franchise agreement if they are in good standing with the company. The initial franchise term is 10 years, as detailed in Paragraph 2.a of the Franchise Agreement. To renew, Paragraph 2.b specifies that the franchisee must meet several requirements.
The franchisee must pay a renewal fee of $2,500. They need to maintain their current premises or secure a substitute location that meets Big Apple Bagels's standards. Remodeling of the existing or new premises may be required to comply with the brand's then-current standards for decor, equipment, and product offerings. Additionally, the franchisee is required to sign a new franchise agreement and other related documents, including a general release of claims against Big Apple Bagels.
It is 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 that while other aspects of the agreement might change, the core financial obligation regarding royalties remains competitive with other renewals.