What does the Virginia addendum amend in the Big Apple Bagels Franchise Agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum is to a BAGELS Franchise Agreement dated , 20 between BAB Systems, Inc. and (Franchisee) to amend said Agreement as follows: 1. Paragraph 16.a.x. of the BAGELS Franchise Agreement on Termination for Failure to Complete Training is amended to read in its entirety as follows: Successful Completion of Training. The grant of the franchise herein is conditioned upon successful completion of the sales/operations seminar and technical training seminar by Franchisee (or Franchisee's individual owner if Franchisee is a corporation, partnership, or other entity.) If during the course of the training programs or within fifteen (15) days thereafter Franchisor concludes that Franchisee has not successfully completed the sales/operations seminar and technical training seminar, may, in its sole discretion and judgment, cancel this Agreement and all rights hereunder, where permitted by applicable law, by giving notice to Franchisee and tendering to Franchisee a refund of its initial franchise fee less an amount to cover the reasonable expenses incurred by Franchisor in connection with training Franchisee. Franchisee agrees that such refund shall be the full extent of Franchisor's liability and responsibility in the event of such cancellation, and Franchisee and its owners shall execute a general release, in a form satisfactory to Franchisor, of any and all claims against Franchisor and its affiliates, officers, directors, employees and agents. Upon cancellation of this Agreement, Franchisee shall return to Franchisor all materials, manuals, information and all other items that Franchisee received from Franchisor, including all copies thereof and notes thereon which Franchisee may have or control. Franchisee further agrees to maintain strictly the confidentiality of all information received relating to the BAB System and not to use in the operation of a food service or similar business, any trade secrets or confidential information obtained from Franchisor in the course of the training program or otherwise.
This Addendum is to the Franchise Disclosure Document of BAB Systems, Inc. for the Commonwealth of Virginia.
Item 17.h. shall be amended to add the following:
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the BAGELS Franchise Agreement or the BAGELS Area Development Agreement do not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Item 20 shall be amended to replace Table 3 with the following:
Table No. 3 Status Franchised Outlets For years 2022 to 2024
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, the addendum for the Commonwealth of Virginia modifies specific sections of the standard franchise agreement and the Franchise Disclosure Document itself to comply with Virginia law.
The addendum amends Paragraph 16.a.x of the Big Apple Bagels Franchise Agreement, which concerns termination due to failure to complete training. The amendment specifies that if Big Apple Bagels determines, within fifteen days after training, that the franchisee has not successfully completed the required seminars, Big Apple Bagels may cancel the agreement and refund the initial franchise fee, less reasonable expenses. The franchisee must then sign a release of claims against Big Apple Bagels and maintain confidentiality regarding the Big Apple Bagels system.
Additionally, the addendum modifies Item 17.h of the Franchise Disclosure Document by adding a clause related to the Virginia Retail Franchising Act. This addition states that it is unlawful for Big Apple Bagels to cancel a franchise without reasonable cause, as defined by Virginia law, and that any termination clauses in the franchise agreement that do not meet this standard may not be enforceable. The addendum also stipulates that Item 20 will be amended to replace Table 3 with an updated version of the table showing the status of franchised outlets for the years 2022 to 2024.