Does Brueggers Bagels have to approve a transfer to an affiliated franchisee?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
16.5.5. If the transferee is an existing Bruegger's developer or franchisee, that the transferee is not in default under its agreements with us and has a good record of customer service and compliance with our operating standards;
16.5.6. That the transferee, whether or not an existing Bruegger's developer or franchisee, demonstrates to our satisfaction that he or she meets (or, if the transferee is a business entity, that its owners and management team meet) our educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the business contemplated hereunder (as may be evidenced by prior related business experience or otherwise); and has adequate financial resources and capital to fulfill your obligations hereunder in a timely manner; and
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise to an existing Brueggers Bagels developer or franchisee, Brueggers Bagels must still approve the transfer. Brueggers Bagels will assess whether the existing franchisee is not in default under their current agreements and has a good record of customer service and compliance with Brueggers Bagels's operating standards.
Brueggers Bagels also stipulates that the transferee, whether or not they are an existing franchisee, must demonstrate that they meet Brueggers Bagels's educational, managerial, and business standards. The transferee must also possess a good moral character, business reputation, and credit rating, and have the aptitude and ability to conduct the business, as evidenced by prior related business experience or otherwise. Additionally, the transferee must have adequate financial resources and capital to fulfill the obligations under the franchise agreement in a timely manner.
Furthermore, the transferor is responsible for paying a transfer fee. In the case of a transfer to an existing franchisee, the quote does not specify the amount of the transfer fee, but in another section it states that the standard transfer fee is equal to 50% of the initial franchise fee Brueggers Bagels is then charging for new Bakery franchises. The transferee (or its Operating Partner, if an entity) and any of the transferee's employees who have not completed an approved training program must complete any training programs in effect for new franchisees, at their own expense.
These conditions ensure that any transfer, even to an affiliated franchisee, meets Brueggers Bagels's standards for operational and financial stability, maintaining brand consistency and service quality. A prospective franchisee should confirm the current transfer fee and training requirements with Brueggers Bagels directly, as these can change over time.