What conditions must be met for Brueggers Bagels to consent to a franchise transfer, including obligations related to outstanding debts?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
16.5.1. That all of your accrued monetary obligations and all other outstanding obligations to us and our affiliates have been satisfied;
16.5.2. That you are not in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you and us or our affiliates;
16.5.3. That the transferor executes a general release, in a form satisfactory to us, of any and all claims against us, our affiliates and their respective past, present, and future officers, directors, shareholders, and employees, in their corporate and individual capacities;
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;
16.5.5. If the transferee is an existing Bruegger's developer or franchisee, that the transferee is not in default under its agreements with us and has a good record of customer service and compliance with our operating standards;
16.5.6. That the transferee, whether or not an existing Bruegger's developer or franchisee, demonstrates to our satisfaction that he or she meets (or, if the transferee is a business entity, that its owners and management team meet) our educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the business contemplated hereunder (as may be evidenced by prior related business experience or otherwise); and has adequate financial resources and capital to fulfill your obligations hereunder in a timely manner; and
16.5.7. That the transferor pays a transfer fee equal to 50% of the initial franchise fee we are then charging for new Bakery franchises.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, several conditions must be met to obtain consent for a franchise transfer. The transferor must ensure that all accrued monetary obligations and any other outstanding obligations to Brueggers Bagels and its affiliates are fully satisfied. Additionally, the transferor must not be in default of any provision within the Franchise Agreement, any amendments to it, or any other agreements between the franchisee and Brueggers Bagels or its affiliates.
Furthermore, the transferor is required to execute a general release, in a form that Brueggers Bagels finds satisfactory, releasing any and all claims against Brueggers Bagels, its affiliates, and their respective officers, directors, shareholders, and employees. The transferee must also enter into a written assignment, in a form satisfactory to Brueggers Bagels, assuming and agreeing to fulfill all of the transferor's obligations under the Franchise Agreement. Alternatively, at Brueggers Bagels's option, the transferee can enter into the then-current form of the Franchise Agreement. If the transferor had guaranteed obligations under the agreement, the transferee must also provide a written guarantee of these obligations in a form satisfactory to Brueggers Bagels.
If the transferee is already a Brueggers Bagels developer or franchisee, they must not be in default under any existing agreements with Brueggers Bagels and must have a good record of customer service and compliance with Brueggers Bagels's operating standards. Whether the transferee is new or existing, they must demonstrate to Brueggers Bagels that they meet the company's educational, managerial, and business standards. They should also possess good moral character, business reputation, and credit rating, and have the aptitude, ability, and adequate financial resources to fulfill the obligations under the Franchise Agreement in a timely manner. Finally, the transferor must pay a transfer fee equal to 50% of the initial franchise fee that Brueggers Bagels is charging for new Bakery franchises at the time of the transfer.