Does Brueggers Bagels assume liability for agreements, representations, or warranties made by the developer that are not expressly authorized under the agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3. No False Representations. Except as otherwise expressly authorized by this Agreement, neither party hereto shall make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name of or on behalf of the other party, or represent that the relationship between us is other than that of Franchisor and Developer. We do not assume any liability, and shall not be deemed liable, for any agreements, representations, or warranties made by you which are not expressly authorized under this Agreement, nor shall we be obligated for any damages to any person or property which directly or indirectly arise from or relate to any Bakery developed hereunder.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, Brueggers Bagels does not assume liability for unauthorized agreements, representations, or warranties made by the developer. Specifically, Brueggers Bagels will not be held liable for any agreements, representations, or warranties made by the developer that are not expressly authorized within the franchise agreement. Furthermore, Brueggers Bagels is not obligated for damages to any person or property that arise from bakery development.
This provision clarifies the separation between Brueggers Bagels and its developers, emphasizing that developers act as independent entities. It is a standard practice in franchising to ensure the franchisor is not held responsible for actions taken by franchisees or developers that are outside the scope of the franchise agreement.
For a prospective Brueggers Bagels developer, this means they must be careful not to make any promises or agreements that Brueggers Bagels has not explicitly approved. Failure to adhere to this could result in the developer being solely liable for any resulting claims or damages. This also highlights the importance of clear communication and adherence to the franchise agreement to avoid potential legal issues.