Can Brueggers Bagels or its affiliates operate or franchise Brueggers Bagels outlets at Co-Branded Locations?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, Brueggers Bagels and its affiliates retain the right to operate and franchise Bruegger's outlets at co-branded locations. This means that even if a franchisee has a Development Agreement or Franchise Agreement for a specific area, Brueggers Bagels can still establish or allow others to establish Bruegger's outlets at co-branded locations within that area.

This has significant implications for prospective franchisees. It means that a franchisee's territory is not entirely exclusive, and they may face competition from co-branded Brueggers Bagels locations even within their designated area. This could potentially impact their sales and profitability.

The FDD also states that Brueggers Bagels has no obligation to compensate franchisees in connection with these activities. Therefore, franchisees should be aware that Brueggers Bagels can pursue co-branding opportunities without providing any financial consideration to existing franchisees who may be affected. This is a common practice in franchising, where franchisors often retain flexibility to explore alternative distribution channels and partnerships.

Prospective franchisees should carefully consider the potential impact of co-branded locations on their business before investing in a Brueggers Bagels franchise. It would be prudent to discuss with the franchisor their plans for co-branding in the franchisee's target area and to assess the potential impact on the franchisee's market share and profitability.