What acknowledgement does Brueggers Bagels require regarding the developer's independent evaluation of proposed sites?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You make the following representations to us, and we rely on them in granting you a license. If any statement is not correct, or if you are aware of exceptions to them, note them after #9 below.
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- You acknowledge that you will independently evaluate and investigate the proposed site(s) for each BRUEGGER'S BAGELS restaurant and the lease or purchase agreement for the site(s). You acknowledge that you bear primary responsibility for selecting the site(s) and negotiating the terms and conditions of your lease(s), sublease(s) or purchase agreement(s) for the site(s).
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees must acknowledge that they will independently evaluate and investigate proposed sites for each Brueggers Bagels restaurant, as well as the lease or purchase agreement for those sites. The franchisee also acknowledges that they bear primary responsibility for selecting the site and negotiating the terms and conditions of their leases, subleases, or purchase agreements. This acknowledgement is a formal representation made by the franchisee to Brueggers Bagels, upon which Brueggers Bagels relies when granting the license.
This requirement means that Brueggers Bagels places the onus of due diligence for site selection squarely on the franchisee. While Brueggers Bagels may provide some basic drawings and specifications, the franchisee is ultimately responsible for assessing the suitability of the location and negotiating favorable lease terms. This includes considering factors such as demographics, traffic patterns, and competition in the area.
The acknowledgement serves to protect Brueggers Bagels from liability related to site selection. By requiring franchisees to conduct their own independent evaluation, Brueggers Bagels aims to ensure that franchisees are fully informed about the risks and opportunities associated with each location. This also aligns with the common franchise industry practice of granting franchisees significant autonomy in site selection, while still providing brand standards and support.
Prospective Brueggers Bagels franchisees should carefully consider this requirement and be prepared to invest the time and resources necessary to thoroughly evaluate potential sites. This may involve hiring real estate consultants, conducting market research, and seeking legal advice to ensure that the lease terms are favorable. Franchisees should also understand that Brueggers Bagels's approval of a site does not guarantee success, as the ultimate performance of the restaurant will depend on a variety of factors, including the franchisee's management skills and local market conditions.