After the Brueggers Bagels agreement expires, terminates, or is transferred, can I operate a Competing Business if I have a Franchise Agreement with Brueggers Bagels or its affiliates?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that, except pursuant to other Franchise Agreements with us or our affiliates, or as we otherwise approve in writing, you will not, for one (1) year after the expiration or termination of this Agreement or the approved transfer of this Agreement to a new franchisee, either directly or indirectly, for yourself or through, on behalf of, or in conjunction with any person or legal entity, own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in any Competing Business which is, or is intended to be, located within ten (10) miles of the Premises or within five (5) miles of any other Bakery.
"Competing Business" means a retail business that sells or offers bagels, cream cheese, and/or coffee products that separately or in the aggregate constitute or would constitute thirty percent (30%) or more of that business' gross revenues at any one or more retail location(s), but does not include any business that you operate under a valid franchise agreement or license agreement with us or one of our affiliates;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, for one year after the expiration, termination, or transfer of the Franchise Agreement, you cannot directly or indirectly own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in any Competing Business within ten miles of the original Brueggers Bagels location or within five miles of any other Brueggers Bagels restaurant. However, this restriction does not apply if you operate the competing business under a valid franchise or license agreement with Brueggers Bagels or one of its affiliates, or if Brueggers Bagels provides written approval.
A "Competing Business" is defined as a retail business that sells or offers bagels, cream cheese, and/or coffee products that separately or in the aggregate constitute 30% or more of that business's gross revenues at any one or more retail locations. This definition clarifies the scope of businesses considered competitive and helps franchisees understand the limitations they face after leaving the Brueggers Bagels system.
This clause protects Brueggers Bagels' market share and brand recognition by preventing former franchisees from immediately opening a competing business nearby. The exception for businesses operated under a Brueggers Bagels franchise agreement allows former franchisees to continue in a similar business, provided it remains within the Brueggers Bagels system. The enforcement clause extends the restriction for one year after compliance begins if a franchisee fails to abide by the restrictions and Brueggers Bagels pursues legal action.