Under what conditions can Big Apple Bagels require a franchisee to close their store?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
i. Franchisor has the right to require Franchisee to close its BAGELS Store if Franchisor determines that Franchisee's BAGELS Store has deficiencies relating to food safety and cleanliness; Franchisee may not reopen the BAGELS Store until Franchisor has re-inspected it and determined that it meets Franchisor's standards.
- ii. Franchisee is strictly prohibited from speaking or communicating with the media in the event of an outbreak of a food borne illness, whether at Franchisee's BAGELS Store or at any other BAGELS Store. Franchisor has the right to be the sole spokesperson on these issues.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, Big Apple Bagels has the right to require a franchisee to close their store if the franchisor determines that the store has deficiencies relating to food safety and cleanliness. The franchisee may not reopen the Big Apple Bagels store until the franchisor has re-inspected it and determined that it meets the franchisor's standards. This is a fairly standard clause in food-related franchises, as the franchisor needs to protect its brand and reputation.
This condition is important for prospective franchisees to understand, as failure to maintain food safety and cleanliness standards can lead to a temporary closure of the store. The franchisee will need to ensure that they have proper procedures and training in place to maintain these standards and avoid any potential issues. The franchisee will also need to be prepared for the possibility of a re-inspection by the franchisor before being allowed to reopen the store.
In the event of a foodborne illness outbreak, the franchisee is strictly prohibited from speaking or communicating with the media. Big Apple Bagels retains the right to be the sole spokesperson on these issues. This restriction highlights the importance of adhering to food safety protocols and the franchisor's control over public communication during a crisis.