What acknowledgement does Brueggers Bagels make regarding changes to the System for bakeries in institutional, non-traditional food service locations?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.6.2. To own, acquire, establish, operate, and franchise or license others to operate outlets at Non-Traditional Locations under the Bruegger's name or any other name, whether inside or outside of the Development Area. "Non-Traditional Location" means a facility where the primary function is not a Bakery business, such as (but not limited to) a performing arts center, arena, stadium, shopping mall, department store, retail store, wholesale club, grocery store, supermarket, casino, amusement park, fairground, college or university, factory, hospital, penal institution, military base, airport, turnpike, limited access highway rest stop, or other transportation facility;
- B. The distinguishing characteristics of the System include bagels, baked goods, cream cheese products and other food and beverage items prepared in accordance with secret and proprietary recipes and manufacturing processes owned by us and our affiliates; distinctive exterior and interior Bakery design, décor, color scheme, fixtures, and furnishings; standards and specifications for ingredients, food preparation, equipment, supplies, and Bakery operations, as well as uniform standards, specifications, methods, policies and procedures for Bakery operations, proprietary inventory and management control, training and assistance; and advertising and promotional programs; all of which may be changed, improved, and further developed by us and our affiliates from time to time.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, Brueggers Bagels retains the right to operate outlets at Non-Traditional Locations under the Bruegger's name or any other name, whether inside or outside of the Development Area. A "Non-Traditional Location" is defined as a facility where the primary function is not a Bakery business. Examples include performing arts centers, arenas, stadiums, shopping malls, colleges, hospitals, military bases, and airports.
This means that Brueggers Bagels can establish or franchise Brueggers Bagels outlets in locations that are not primarily restaurants, even within a franchisee's development area. This could include locations like a Brueggers Bagels within a university cafeteria or a hospital food court. The FDD also states that the distinguishing characteristics of the Brueggers Bagels System may be changed, improved, and further developed by Brueggers Bagels and its affiliates from time to time.
For a potential franchisee, this indicates that Brueggers Bagels retains significant control over where new outlets can be opened, especially in non-traditional venues. It also means that the franchisee's territory is not fully protected from competition from other Brueggers Bagels locations. Furthermore, Brueggers Bagels has the right to modify the System, which includes standards, specifications, methods, policies and procedures for Bakery operations, which could impact how a franchisee operates their business. A franchisee should inquire about the extent to which the System may be altered and how those changes could affect their operations and profitability.
This is a fairly standard practice in franchising, as franchisors typically need the flexibility to adapt their business model to different market conditions and opportunities. However, it's crucial for franchisees to understand these rights and limitations before investing in a Brueggers Bagels franchise.