What upgrades to the store are required for a Big Apple Bagels franchisee to renew their franchise?

ination of the Franchise Agreement of Franchisee's BAGELS Production Store, unless sooner terminated as provided in Sections 15 and 16 hereof.

b. Renewal.

• i. For a BAGELS Production Store Franchise or a BAGELS Satellite Store Franchise, Franchisee may, at his option, renew the Franchise for two additional ten (10) year terms, provided that:

  • (a) Franchisee has given Franchisor written notice of his election to renew not less than six (6) months nor more than twelve (12) months prior to the end of the then-current term. An election by Franchisee to renew the lease or sublease for the premises of the Store or to execute a new lease or sublease for such premises shall, at the sole option of Franchisor, be deemed an election by Franchisee to extend the franchise for the initial term of the lease or sublease, plus the term of any options and/or extensions, of such lease or sublease;
  • (b) Franchisee is not at such time in material breach of any of his obligations under this Agreement or any other agreement between Franchisee and Franchisor or any of its Affiliates;
  • (c) Franchisee has substantially complied with all the terms and conditions of this Agreement and has met the operating and quality standards and procedures prescribed by Franchisor for BAGELS Stores during the Term;
  • (d) Franchisee has satisfied all monetary obligations owed to Franchisor, its Affiliates and designated suppliers, and has timely met these obligations throughout the Term;
  • (e) Franchisee's store location and lease have been approved by Franchisor;
  • (f) Franchisee has agreed to upgrade the Store to Franchisor's thencurrent standards of decor, equipment, and product offerings;
  • (g) Franchisee has paid Franchisor the renewal fee of Two Thousand Five Hundred Dollars ($2,500.00);
  • (h) Franchisee complies with Franchisor's then-current qualification and training requirements; and

• (i) Franchisee executes a general release, in a form prescribed by Franchisor, of any claims against Franchisor and its officers, directors, agents and employees.

• ii. Renewal of this Agreement shall be effectuated by the execution by Franchisor and Franchisee of the then current form of standard Franchise Agreement and all other agreements and legal instruments and documents then customarily used by Franchisor in the granting of Franchises for BAGELS Stores, which may contain substantially different provisions from this Agreement, including higher or lower royalty fees and Marketing Fund contributions, and new fees not contained in this Agreement.

• iii. In the event Franchisee fails to give Franchisor notice as provided in Paragraph 2.b.i(a) of his intent to renew the franchise, Franchisor need not renew the Franchise Agreement. Further, in said event Franchisor has the right to commence measures to seek another franchisee for the Store, including but not limited to advertising or contracting with a business broker.

• iv. In the event Franchisee does not intend to renew, Franchisee has a mandatory obligation to give Franchisor written notice of Franchisee's intent not to renew the franchise at least six (6) months prior to the expiration date of this Agreement. If Franchisee fails to give Franchisor at least six (6) months' notice of its intent not to renew, notwithstanding anything to the contrary contained in this Agreement, Franchisor has the right to impose an automatic renewal of this Agreement, effective on this Agreement's scheduled expiration date ("Renewal Date"), for a renewal term of ten (10) years. In all events, upon renewal, Franchisee shall be obligated to pay Franchisor, as of the Renewal Date, the Renewal Fee set forth in Paragraph 2.b.i.(g).

• v. Franchisor may in its sole discretion extend this Agreement's term for the time period necessary to either give Franchisee reasonable time to correct deficiencies or to give Franchisor adequate time to give notice to Franchisee of Franchisor's refusal to grant a successor franchise as required under this Agreement or under applicable law.

• vi.

Source: Item 22 — CONTRACTS (FDD pages 86–87)