factual

To which agreements does the North Dakota Addendum apply for Brueggers Bagels?

Brueggers_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

NORTH DAKOTA ADDENDUM TO THE FRANCHISE AGREEMENT, LICENSE AGREEMENT, AND DEVELOPMENT AGREEMENT

In recognition of the requirements of the North Dakota Franchise Investment Law, N.D. Cent. Code, §§ 51 19 01 through 51 19 17, and the policies of the office of the State of North Dakota Securities Commission, the Franchise Agreement, License Agreement and Development Agreement (as applicable, the "Agreement") shall be amended as follows:

Source: Item 23 — RECEIPTS (FDD pages 61–335)

What This Means (2025 FDD)

According to Brueggers Bagels' 2025 Franchise Disclosure Document, the North Dakota Addendum applies to the Franchise Agreement, License Agreement, and Development Agreement. The addendum serves to amend these agreements in accordance with the North Dakota Franchise Investment Law and the policies of the North Dakota Securities Commission.

Specifically, the addendum addresses aspects of the agreements that the North Dakota Securities Commissioner has identified as potentially unfair, unjust, or inequitable to franchisees in North Dakota. These include restrictive covenants, the location of arbitration proceedings, restrictions on the legal forum, liquidated damages and termination penalties, the applicable laws, waivers of trial by jury, waivers of exemplary and punitive damages, general releases, limitations of claims, and the enforcement of the agreement.

For a prospective Brueggers Bagels franchisee in North Dakota, this means that the standard franchise, license, or development agreements are modified to comply with North Dakota law, providing additional protections. However, the addendum only takes effect if the agreement and the relationship between the franchisee and BFC (Bruegger's Franchise Corporation) meet the jurisdictional requirements of the North Dakota Franchise Investment Law, without considering the addendum itself. The original agreements remain in effect except where expressly modified by the addendum.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.