Are the amounts collected by Brueggers Bagels under the Development Agreement refundable?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, all amounts collected under the Development Agreement are deemed fully earned immediately upon receipt and are non-refundable. This means that once Brueggers Bagels receives any payment from the developer, those funds will not be returned under any circumstances.

Specifically, a portion of the Development Fee is applied against the Initial Franchise Fee for each Bakery to be developed. For the first three Bakeries opened, $10,000 of the Development Fee is applied toward the Initial Franchise Fee. For subsequent Bakeries, $5,000 of the Development Fee is applied to each Initial Franchise Fee. The Initial Franchise Fee is Thirty Thousand Dollars ($30,000).

This non-refundable policy is a significant consideration for prospective developers. If a developer fails to open a Bakery within the time specified in the Development Schedule, or if the required number of Bakeries are not in operation by the deadline, Brueggers Bagels has the option to terminate the agreement. In such a scenario, the developer would forfeit all amounts paid, as they are non-refundable. This highlights the importance of carefully assessing one's ability to meet the development schedule and financial obligations before entering into a Development Agreement with Brueggers Bagels.