For Brueggers Bagels, what is the condition for acquiring and holding an ownership interest in the Franchisee?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that: (a) your execution of this Agreement is a condition of acquiring and holding your ownership interest in the Franchisee, and (b) you have received good and valuable consideration for executing this Agreement.
BFC may enforce this Agreement directly against you.
If a business entity signs this Agreement, all persons who have a legal or beneficial ownership interest in that business entity must also execute this Agreement and if your owners reside in a community property state we may require their spouse to execute this Confidentiality and Non-Competition Agreement.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, a condition of acquiring and holding an ownership interest in the Franchisee or Licensee is the execution of an agreement with Bruegger's Franchise Corporation (BFC). This agreement legally binds the person with legal or beneficial ownership to the obligations outlined in the Franchise Agreement or License Agreement.
This obligation includes, but is not limited to, restrictions on competition, maintaining confidentiality, abiding by restrictions on ownership changes, and adhering to dispute resolution provisions. BFC has the right to enforce this agreement directly against the individual owner. If the franchisee is a business entity, all individuals with a legal or beneficial ownership interest in that entity must also execute the agreement. Furthermore, if any owner resides in a community property state, their spouse may also be required to sign a Confidentiality and Non-Competition Agreement.
This requirement ensures that all individuals with a stake in the Brueggers Bagels franchise are committed to upholding the brand's standards and protecting its interests. It also allows Brueggers Bagels to take direct legal action against individual owners who violate the terms of the agreement, rather than solely pursuing the franchisee entity. This is a common practice in franchising to protect the franchisor's brand and confidential information.