Besides the license granted in the agreement, what rights to the Marks and System does Brueggers Bagels retain?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3.1. To own, acquire, establish, operate, and franchise or license others to operate Bakeries located outside of the Protected Area;
- 2.3.2. To own, acquire, establish, operate, and franchise or license others to operate outlets at Non-Traditional Locations under the Bruegger's name or any other name, whether inside or outside of the Protected Area;
- 2.3.3. To own, acquire, establish, operate, and franchise or license others to operate outlets at Co-Branded Locations, whether inside or outside of the Protected Area;
- 2.3.4. To own, acquire, establish, operate, and franchise or license others to operate businesses that are not operated under the System and that do not use the Proprietary Marks licensed to you under this Agreement, even if those businesses offer or sell products that are the same as or similar to the products offered by Bruegger's Bakeries;
- 2.3.5. To develop, manufacture, have manufactured, market, sell and distribute, at retail or wholesale, and license others to manufacture, sell or distribute, packaged and prepared food products or any other goods or services under the Bruegger's mark or any other name or mark, through any channel of distribution other than a Bakery, including but not limited to the Internet, Non-Traditional Locations, Co-Branded Locations, supermarkets, specialty food stores, convenience stores, wholesale clubs, and retail food stores, anywhere in the world; and
- 2.3.6. To use the Bruegger's brand in other lines of business besides the operation of restaurants, anywhere in the world.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, Brueggers Bagels retains several rights to the Proprietary Marks and the System, even while granting a license to a franchisee. Brueggers Bagels maintains the right to operate or franchise bakeries outside of a franchisee's protected area. This means that while a franchisee may have a specific territory, Brueggers Bagels can still establish other locations outside that area.
Brueggers Bagels also retains the right to operate or franchise outlets at Non-Traditional Locations, whether inside or outside the franchisee's protected area. Non-Traditional Locations include venues where a bakery is not the primary business, such as shopping malls, universities, or transportation facilities. Furthermore, Brueggers Bagels can develop, manufacture, market, sell, and distribute packaged food products or other goods and services under the Brueggers Bagels mark through channels other than a traditional bakery, like supermarkets or the internet, anywhere in the world.
Additionally, Brueggers Bagels has the right to use the Brueggers Bagels brand in other lines of business besides restaurants, globally. These retained rights allow Brueggers Bagels to diversify its brand presence and revenue streams beyond traditional franchised bakeries, which could impact a franchisee if Brueggers Bagels chooses to expand into other channels or locations near the franchisee's territory. These stipulations are important for prospective franchisees to consider, as they define the scope and limitations of the rights granted to them under the Franchise Agreement and the potential for competition from the franchisor itself.