Does Brueggers Bagels have to approve all transfers of interest in the franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ions and all other outstanding obligations to us and our affiliates have been satisfied;
- 8.5.2. That you are not in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you and us or our affiliates;
- 8.5.3. That the transferor executes a general release, in a form satisfactory to us, of any and all claims against us, our affiliates and their respective past, present, and future officers, directors, shareholders, and employees, in their corporate and individual capacities;
- 8.5.4. That the transferee (and if the transferee is a corporation, partnership, or limited liability company, such owners of a beneficial interest in the transferee as we may request) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge all of your obligations under this Agreement; or, at our option, enter into our then current form of Franchise Agreement; and, if the transferor guaranteed your obligations under this Agreement, that the transferee
guarantee the performance of all such obligations in writing in a form satisfactory to us;
- 8.5.5. 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;
- 8.5.6. 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
- 8.5.7. That the transferor pays a transfer fee of Five Thousand Dollars ($5,000)
- 8.5.8. That the transferee (if an entity, i
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, any transfer of interest is subject to approval by Brueggers Bagels. Specifically, if a franchisee or owner dies, becomes incapacitated, or enters bankruptcy proceedings, their executor, administrator, personal representative, or trustee must apply in writing to Brueggers Bagels within 3 months for consent to transfer the person's interest. This transfer is subject to the conditions outlined in Section 8 of the agreement.
Brueggers Bagels also has specific criteria that the transferee must meet. The transferee cannot be in default under any existing agreements with Brueggers Bagels and must have a good record of customer service and compliance with operating standards if they are an existing developer or franchisee. All transferees must demonstrate that they meet Brueggers Bagels' educational, managerial, and business standards, possess a good moral character, business reputation, and credit rating, and have the aptitude and ability to conduct the business, along with adequate financial resources.
Additionally, the transferor is responsible for paying a transfer fee of $5,000. The transferee, or its Operating Partner if the transferee is an entity, along with any 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 new owner or operator of a Brueggers Bagels franchise meets the standards and qualifications set by the company, maintaining the brand's quality and reputation.
If the deceased or incapacitated person was the Operating Partner, Brueggers Bagels has the right, but not the obligation, to take over the bakery's operation. They can manage the bakery until the transfer is completed, charging a reasonable management fee for their services. This provision ensures the continued operation of the Brueggers Bagels location during the transition period.