What agreements may Brueggers Bagels require franchisees to have their Store Manager sign?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Each person who is or becomes an owner, director or officer of Franchisee 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 19 above. The current form of Guaranty is attached to this Agreement as Exhibit B. 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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 48)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, any manager who has received or will receive training from Brueggers Bagels must sign a Confidentiality and Non-competition Agreement. This agreement is in a form prescribed by Brueggers Bagels, with the current version attached as Exhibit C to the Franchise Agreement. 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.
This requirement is fairly standard in the franchise industry, particularly for food-service franchises where proprietary recipes, operational methods, and marketing strategies are critical to the brand's success. By mandating these agreements, Brueggers Bagels aims to safeguard its business model and maintain a competitive edge. The agreement likely restricts managers from disclosing confidential information, such as recipes or operational procedures, and from working for a competing business during and after their employment with the Brueggers Bagels franchise.
For a prospective franchisee, this means they must ensure that any manager they hire who will undergo training with Brueggers Bagels is willing to sign the Confidentiality and Non-competition Agreement. This could impact hiring decisions and should be clearly communicated to potential managers during the hiring process. The franchisee should also be familiar with the terms of Exhibit C to understand the specific restrictions and obligations placed on their managers. It is also important to note that if the franchisee themselves operate as a corporation, partnership, or limited liability company, the owners, officers, and directors may also be required to sign a similar Guaranty, as detailed in Exhibit B.