What is the condition under which the Brueggers Bagels licensee may terminate upon notice?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
10.2. Termination by Licensee. Licensee shall have the right to terminate this Agreement, if any one or more of the following events shall occur:
(b) A petition under any part of the federal bankruptcy laws, or an action under any present or future insolvency laws or statute, is filed against Licensor and shall not be dismissed within thirty (30) days after the filing thereof;
(d) With respect to Section 10.2(a), termination shall be automatic upon the occurrence of the event. With respect to Section 10.2(b), Licensee may terminate upon notice, and with respect to Section 10.2(c), Licensee may terminate after the applicable cure or notice period has expired; or
(e) If Licensee is in compliance with terms of this Agreement, and upon delivering to Licensor sixty (60) days' prior written notice that the lease or concession agreement with the host facility for the Bakery has been terminated, expired or not renewed.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, a licensee has the right to terminate the agreement under specific conditions with prior notice. The licensee may terminate the agreement upon notice if a petition under any part of the federal bankruptcy laws, or an action under any present or future insolvency laws or statute, is filed against Brueggers Bagels and is not dismissed within thirty (30) days after the filing.
Additionally, the licensee can terminate the agreement if they are in compliance with the terms of the agreement and provide Brueggers Bagels with sixty (60) days' prior written notice that the lease or concession agreement with the host facility for the Bakery has been terminated, expired, or not renewed. This provides the licensee with an option to exit the agreement if the location of their Brueggers Bagels franchise is no longer viable due to lease issues.
These termination rights are important for a prospective Brueggers Bagels franchisee to understand, as they provide avenues for the franchisee to end the agreement if certain adverse events occur with the franchisor or the location's lease. It is important to note that the licensee must adhere to the specific notice requirements to properly exercise these termination rights.