What is the consequence if a Brueggers Bagels franchisee violates the nondisclosure agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that while you have a legal or beneficial ownership interest in Licensee and thereafter, you: (a) will not use the confidential information in any other business or capacity (such use being an unfair method of competition); (b) will exert best efforts to maintain the confidentiality of the confidential information; and (c)
If you cease to have an interest in Franchisee, you must deliver to BFC any such confidential information in your possession or control.
During the term of the Franchise Agreement and for as long as you have any legal or beneficial ownership interest in Franchisee, you agree that you will not, without BFC's consent (which consent may be withheld at BFC's discretion) directly or indirectly (such as through an Affiliate or family members) own any legal or beneficial interest in, or render services or give advice in connection with: (a) any Competing Business located anywhere; or (b) any entity located anywhere that grants franchises or licenses interests to others to operate any Competing Business.
For a period of one (1) year after the expiration or termination of the Franchise Agreement or the approved transfer of the Bakery to a new owner, you will not directly or indirectly own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in any Competing Business which is, or is intended to be, located within ten (10) miles of the
Premises or within five (5) miles of any other Bruegger's Bakery, except for any business operated pursuant to a valid franchise agreement or license agreement with us or one of our affiliates, or as we otherwise approve in writing. If you fail or refuse to abide by any of the foregoing restrictions and BFC obtains enforcement in a judicial or arbitration proceeding, the obligations under the breached restriction will continue in effect for one (1) year after the date you begin to comply with the order enforcing the restriction.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, if a franchisee has a legal or beneficial ownership interest in the franchise, they agree not to use confidential information in any other business or capacity, as this would be considered an unfair method of competition. Franchisees must exert their best efforts to maintain the confidentiality of the confidential information and not make unauthorized copies of any confidential information disclosed in written, electronic, or other forms.
If a franchisee ceases to have an interest in the Brueggers Bagels franchise, they must deliver to Bruegger's Franchise Corporation (BFC) any confidential information in their possession or control. During the term of the Franchise Agreement and as long as the franchisee has any legal or beneficial ownership interest in the franchise, they agree not to directly or indirectly own any legal or beneficial interest in, or render services or give advice in connection with any Competing Business without BFC's consent. BFC may withhold consent at its discretion.
For one year after the expiration or termination of the Franchise Agreement or the approved transfer of the Bakery to a new owner, the franchisee will not directly or indirectly own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in any Competing Business within ten miles of the Premises or within five miles of any other Brueggers Bagels Bakery. If the franchisee fails to abide by these restrictions and BFC obtains enforcement in a judicial or arbitration proceeding, the obligations under the breached restriction will continue for one year after the date the franchisee begins to comply with the order enforcing the restriction.