According to the Brueggers Bagels Development Agreement, what is the agreement between?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer is developing one or more Bruegger's ("Bakeries) pursuant to a Development Agreement (the "Development Agreement") with BRUEGGER'S FRANCHISE CORPORATION ("BFC").
The Development Agreement requires persons with legal or beneficial ownership interests in Developer to be personally bound by Developer's obligations under the Development Agreement, including restrictions on competition, confidentiality obligations, restrictions on ownership changes, and dispute resolution provisions.
- 1.4. This Agreement does not grant you any right to use the Proprietary Marks or the System.
All rights to use the Proprietary Marks and the System are granted solely under the terms of the Franchise Agreement.
You acknowledge that you will have no right or power under this Agreement or under any Franchise Agreement to sub-franchise any other person or legal entity to use the Proprietary Marks or the System.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, the Development Agreement is between Bruegger's Franchise Corporation (BFC) and a developer who wishes to develop one or more Brueggers Bagels Bakeries within a specific territory. The developer is granted the right to develop Bakeries under the Brueggers Bagels system and use their Proprietary Marks.
The Development Agreement requires individuals with legal or beneficial ownership interests in the developing entity to be personally bound by the developer's obligations. These obligations include restrictions on competition, maintaining confidentiality, adhering to ownership change restrictions, and complying with dispute resolution provisions. This ensures that all parties with a stake in the development are committed to the terms of the agreement.
Under the Development Agreement, the developer must follow a Development Schedule, and for each Bakery to be developed, a separate Brueggers Bagels Franchise Agreement must be executed. The agreement does not grant the developer any right to use the Proprietary Marks or the Brueggers Bagels system; those rights are granted solely under the terms of the Franchise Agreement. The developer also cannot sub-franchise the rights to any other person or entity.