Before bringing a lawsuit against Brueggers Bagels, what dispute resolution steps are required?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or License Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration | Section 28.3 of the Franchise Agreement; Section 14.8 of the License Agreement | Before bringing an action in court, the parties must first submit the dispute to non-binding mediation (except for injunctive relief) in Colorado (subject to applicable state law). |
| Provision | Section in Development Agreement | Summary |
| --- | --- | --- |
| u. Dispute resolution by arbitration | Section 20.3 | Before bringing an action in court, the parties must first submit the dispute to non-binding mediation (except for injunctive relief) in Colorado (subject to applicable state law).as req |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, both the Franchise Agreement and the Development Agreement require that disputes be submitted to non-binding mediation before a lawsuit is filed. This mediation must take place in Colorado, and this requirement is subject to applicable state law. However, this pre-litigation mediation requirement does not apply when seeking injunctive relief.
For a prospective Brueggers Bagels franchisee, this means that if a dispute arises with the franchisor, they will generally be required to participate in non-binding mediation before pursuing legal action. Mediation involves attempting to resolve the dispute with the help of a neutral third party. Because the mediation is non-binding, neither party is required to accept the mediator's suggestions. This process can potentially save both parties time and money by resolving the issue without resorting to a lawsuit.
However, there is an exception: if a party is seeking injunctive relief, they are not required to participate in mediation first. Injunctive relief typically involves seeking a court order to stop someone from doing something, and it often requires swift action. The FDD specifies that the principal place of business for Brueggers Bagels is in Denver, Colorado, so Colorado law and jurisdiction will likely govern dispute resolution, subject to any overriding state laws where the franchise is located.