What agreements are referenced in the general release for Brueggers Bagels?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, a general release is executed as a condition of several agreements. These include the transfer of the Bruegger's Development Agreement, the transfer of the Bruegger's Franchise Agreement, or the execution of a Successor Franchise Agreement. This means that franchisees may be required to sign a release when transferring their development rights or franchise agreement to another party, or when entering into a new franchise agreement to continue operations.

In essence, the general release serves to protect Brueggers Bagels from potential future claims by the franchisee related to the transferred or renewed agreement. By signing the release, the franchisee typically agrees to waive any rights to sue Brueggers Bagels regarding matters covered in the original agreement. This is a common practice in franchising to ensure a clean break or continuation of the franchise relationship under new terms.

However, the FDD also notes some important caveats regarding these releases, particularly in the states of New York, Maryland and Washington. For example, New York law stipulates that the release of claims does not include any claim under the New York General Business Law, Article 33, Sections 680-695. Similarly, Maryland law specifies that the release will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. In Washington, a release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act unless specific conditions are met, such as a negotiated settlement with independent counsel. Therefore, prospective franchisees should be aware of these state-specific protections and consult with legal counsel to fully understand the implications of signing a general release in their particular jurisdiction.