Can Brueggers Bagels change the allocation of the Marketing Contribution?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to change the allocation of the Marketing Contribution by giving you written notice of the change. The change will take effect at the end of that month. We reserve the right to collect and hold LSM funds, and seek your guidance on how LSM funds are to be spent; however, if you do not provide timely guidance, we reserve the right to direct the expenditure of LSM funds. The Marketing Contribution (whether deposited in the Systemwide Marketing Fund, provided to a Marketing Co-Op, or designated for LSM) is not subject to refund or repayment under any circumstances. If we establish a Marketing Co-op for a geographic territory in which you have one or more Bakeries, you must join the Marketing Co-op. See Item 11 for details. Company-owned
Bakeries must also join if they are located within the designated territory. Each Bakery within the geographic territory of a Marketing Co-op (including Company-owned Bakeries) will have one vote with respect to fees imposed by the cooperative. BEI could have voting control based on the number of company-owned Bakeries in the Marketing Co-op.
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, Brueggers Bagels has the right to change the allocation of the Marketing Contribution. Brueggers Bagels will provide written notice to the franchisee regarding this change, and the change will take effect at the end of that month.
The Marketing Contribution is used for the Systemwide Marketing Fund, Marketing Co-Op, or designated for Local Store Marketing (LSM). These contributions are not subject to refund or repayment under any circumstances. Currently, 50% of the Marketing Contribution (1.75% of gross sales) goes to the Systemwide Marketing Fund, and 50% (1.75% of gross sales) goes to LSM.
Brueggers Bagels also reserves the right to collect and hold LSM funds and seek guidance on how these funds should be spent. However, if the franchisee does not provide timely guidance, Brueggers Bagels reserves the right to direct the expenditure of LSM funds. If a Marketing Co-op is established for a geographic territory in which a franchisee has one or more Bakeries, the franchisee must join the Marketing Co-op. Company-owned Bakeries must also join if they are located within the designated territory. Each Bakery within the geographic territory of a Marketing Co-op (including Company-owned Bakeries) will have one vote with respect to fees imposed by the cooperative; however, BEI could have voting control based on the number of company-owned Bakeries in the Marketing Co-op.