Under what conditions can Big Apple Bagels impose monetary fees for non-compliance?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
w the BAGELS Store's personnel and customers. Franchisee agrees to cooperate with Franchisor or its designee fully. If Franchisor or its designee exercises any of these rights, Franchisor or its designee will not interfere unreasonably with the BAGELS Store's operation.
13. MONETARY FEES FOR NON-COMPLIANCE.
a. If Franchisee commits any of the defaults described in this Paragraph 13, Franchisor may impose monetary fees on Franchisee, in addition to the other remedies set forth in this Paragraph 13 and elsewhere in this Agreement. The imposition of a fee under this Paragraph 13 in no manner limits Franchisor's right to exercise any other remedy available under this Agreement or in law.
- b. Failure to Report Gross Revenues. Franchisee shall pay Franchisor a fee of Ten Dollars ($10) per day, beginning on the eighth (8th) day from the date performance is due, up through and including the day the default is cured, if he fails to report the Gross Revenues of the BAGELS Store as set forth in Subparagraph 11.b.i. by the stated deadline.
- c. Failure to Furnish Register Tapes or Reports, Financial Statements and Tax Returns. Franchisee shall pay Franchisor a fee of One Hundred Dollars ($100) per day, beginning on the fifteenth (15th) day from the date performance is due, up through and including the day the default is cured, if he fails to furnish the register tapes or reports, financial statements, and/or tax returns as set forth in Subparagraphs 11.b.ii – v by the stated deadlines.
- d. Failure to Pay Royalty Fees or Marketing Fund contributions. Franchisee shall pay Franchisor a fee of One Hundred Dollars ($100) per day, beginning on the fifteenth (15th) day from the date performance is due, up through and including the day the default is cured, if Franchisee is in default in the payment of the royalty fee required under Subparagraph 8.b. or Marketing Fund contribution under Subparagraph 10.a.i.
- e. Failure to Prop
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the company can impose monetary fees for non-compliance under specific circumstances. These fees are in addition to any other remedies Big Apple Bagels might pursue under the Franchise Agreement or by law.
Specifically, if a franchisee fails to report gross revenues by the stated deadline, they will be charged $10 per day, starting on the eighth day after the due date, until the issue is resolved. For failures to furnish register tapes, reports, financial statements, or tax returns by their respective deadlines, the fee is $100 per day, beginning on the fifteenth day after the due date until compliance is achieved. A similar $100 per day fee, starting on the fifteenth day, applies to defaults in royalty fee or Marketing Fund contribution payments.
Additionally, Big Apple Bagels will charge $100 per day for each day a franchisee fails to properly use proprietary products as outlined in the agreement or the operations manual. These monetary fees serve as a deterrent against non-compliance and an avenue for Big Apple Bagels to recoup losses or offset administrative burdens caused by a franchisee's failure to adhere to the franchise agreement terms.