What is the condition regarding the transferee entity's agreement to assume the obligations of the Brueggers Bagels licensee?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.5.4. That the transferee (and if the transferee is a corporation, partnership, or limited liability company, such owners of a beneficial interest in the transferee as we may request) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge all of your obligations under this Agreement; or, at our option, enter into our then current form of Franchise Agreement; and, if the transferor guaranteed your obligations under this Agreement, that the transferee guarantee the performance of all such obligations in writing in a form satisfactory to us;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a condition of transferring a license agreement is that the transferee must agree to assume all of the obligations under the existing agreement. Specifically, the transferee (and owners, if the transferee is a business entity) must enter into a written assignment, in a form satisfactory to Brueggers Bagels, agreeing to fulfill all obligations outlined in the original agreement.
Alternatively, Brueggers Bagels has the option to require the transferee to enter into the brand's then-current form of Franchise Agreement. If the transferor had guaranteed the original obligations, the transferee must also provide a written guarantee, in a form satisfactory to Brueggers Bagels, ensuring the performance of all such obligations.
This requirement ensures that the new Brueggers Bagels franchisee is legally bound to uphold the standards and responsibilities of the franchise system. It protects Brueggers Bagels's interests by maintaining the integrity of its franchise agreements and operational standards, regardless of changes in ownership.