For Brueggers Bagels, what agreement must owners or executive officers of a Developer execute?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.4. Personal Obligations of Owners, Officers, Directors, Management Personnel and Spouses. Each person who is or becomes an owner, director or officer of Developer must execute a Guaranty in the form we prescribe, undertaking to be bound jointly and severally by the terms of this Agreement including but not limited to those provisions in Section 11 above. The current form of Guaranty is attached to this Agreement as Exhibit D. Each person who is, or becomes, an owner or executive officer of Developer must also execute a Confidentiality and Non-competition Agreement in a form we prescribe, the current form of which is attached to this Agreement as Exhibit F. If you are a publicly-held entity, the requirements in this Section will not apply to ownership by you of less than five percent (5%) beneficial interest. In addition, at our request, if the Guarantor resides in a community property state, the Guarantor will cause his or her spouse, if any, to execute a Guaranty and you must also obtain signed Confidentiality and Non-competition Agreements referred to above. Confidentiality and Non-competition Agreements must also be obtained from any manager who has received or will receive training from us.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, each person who is or becomes an owner or executive officer of a Developer must execute a Confidentiality and Non-competition Agreement. This agreement is in a form that Brueggers Bagels prescribes, with the current form attached to the Development Agreement as Exhibit F.
This requirement ensures that individuals with significant influence over the Developer are legally bound to protect Brueggers Bagels' confidential information and refrain from competitive activities. This is a standard practice in franchising to safeguard the brand's trade secrets and market position.
Additionally, if the Guarantor resides in a community property state, Brueggers Bagels may request that the Guarantor's spouse also execute a Guaranty and sign the Confidentiality and Non-competition Agreements. This provision aims to further protect Brueggers Bagels' interests by ensuring that community property laws do not undermine the enforceability of these agreements. Confidentiality and Non-competition Agreements must also be obtained from any manager who has received or will receive training from Brueggers Bagels.