What business risks should a developer understand before signing a Brueggers Bagels Development Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You recognize and understand that business risks which exist in connection with the ownership, development and operation of any business make the success or failure of the BRUEGGER'S BAGELS restaurant license subject to many variables, including your skills and abilities, competition, interest rates, the economy, inflation, location(s), operation, labor and supply costs, lease terms and costs and the marketplace. Further, you understand that the economic and business factors that exist at the time you open your license may change. You acknowledge that you have conducted an independent investigation of the business venture contemplated by the License Agreement and recognize that the success of the venture involves substantial business risk and will be dependent primarily on your ability as an independent businessperson. You hereby acknowledge your willingness to undertake these business risks.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a developer must recognize the business risks associated with owning, developing, and operating a business. The success or failure of a Brueggers Bagels restaurant is subject to numerous variables. These include the developer's own skills and abilities, the level of competition in the market, prevailing interest rates, the overall state of the economy, inflation rates, and the specific location of the restaurant.
Additional factors that can impact the success of a Brueggers Bagels franchise include operational efficiency, labor and supply costs, and the terms and costs associated with the lease. The FDD emphasizes that economic and business conditions can change between the time a developer signs the agreement and when they actually open their franchise. Therefore, a developer needs to conduct their own independent investigation of the business venture and acknowledge that its success depends largely on their own capabilities as an independent businessperson and their willingness to accept these risks.
In essence, Brueggers Bagels wants to ensure that developers understand that franchising, like any business, carries inherent risks. The company highlights the importance of the developer's business acumen and the influence of external economic factors. This disclosure serves to protect Brueggers Bagels by ensuring franchisees are aware of potential challenges and are not relying solely on the franchisor for guaranteed success.