What agreements must a Brueggers Bagels franchisee require their general manager and assistant managers to execute at the franchisor's request?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Each person who is, or
becomes, an owner or executive officer of Franchisee 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 C. 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 the 2025 Brueggers Bagels Franchise Disclosure Document, franchisees must obtain signed Confidentiality and Non-competition Agreements from any manager who has received or will receive training from Brueggers Bagels. This requirement ensures that individuals in management positions who gain access to Brueggers Bagels' confidential information and trade secrets are legally bound to protect that information and not compete with the franchise. These agreements are in a form prescribed by Brueggers Bagels.
The Confidentiality and Non-competition Agreements protect Brueggers Bagels' interests by preventing managers from using proprietary information in other businesses or capacities, maintaining the confidentiality of the information, and preventing unauthorized copies of confidential information. These obligations extend both during the manager's tenure and after they cease to be associated with the Brueggers Bagels franchise.
This requirement is a standard practice in franchising, as franchisors need to safeguard their operational methods, recipes, and other proprietary information. By mandating these agreements, Brueggers Bagels aims to maintain the integrity of its system and protect its competitive advantage. Prospective franchisees should review the specific terms of the Confidentiality and Non-competition Agreement (Exhibit C) to fully understand the obligations and restrictions it imposes on their managers.