How is a 'Competing Business' defined in the context of a Brueggers Bagels franchise lease agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- The lessor must agree not to lease space in property owned, managed or controlled by it within one mile of the Premises to any Competing Business, as defined below. "Competing Business" includes any entity that is open for both breakfast and lunch and whose primary business consists of the sale of both: 1) freshly-baked bakery goods such as breads and/or bagels, muffins, scones, Danishes or other pastries, and 2) made-toorder café items such as sandwiches, salads, soups, and desserts. The lessor must also agree to insert in any lease, deed or other agreement affecting the shopping center property a restrictive clause prohibiting use of the property in any way that conflicts with the lease for the Premises.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, MANUALS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, a 'Competing Business' is specifically defined within the context of the lease agreement to protect the franchisee's market. The definition is important because Brueggers Bagels requires that the lessor (landlord) agrees not to lease space to any competing business within one mile of the Brueggers Bagels location. This clause aims to prevent direct competition from setting up shop too close to the franchised bakery.
For a business to be considered a 'Competing Business' it must meet specific criteria. First, it must be open for both breakfast and lunch. Second, its primary business must consist of the sale of both freshly-baked bakery goods (such as breads, bagels, muffins, scones, danishes, or other pastries) and made-to-order café items (such as sandwiches, salads, soups, and desserts). This definition is fairly comprehensive, covering the core offerings of a typical Brueggers Bagels franchise.
This restriction is beneficial for a Brueggers Bagels franchisee as it reduces the risk of direct competition impacting their sales and profitability. It ensures that the landlord is contractually obligated to avoid leasing space to businesses that would directly compete with the Brueggers Bagels franchise, providing a degree of market exclusivity within the defined radius. This type of clause is common in franchise agreements to protect franchisees from oversaturation and direct competition within a specific area.