What is considered a 'Competing Business' to Brueggers Bagels, as defined in the agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.1.1. Own, maintain, operate, engage in, be employed by, provide any assistance to, or have any interest in any Competing Business, as defined below. "Competing Business" means a retail business that sells or offers bagels, cream cheese, and/or coffee products that separately or in the aggregate constitute or would constitute thirty percent (30%) or more of that business' gross revenues at any one or more retail location(s), but does not include any business that you operate under a valid franchise agreement or license agreement with us or one of our affiliates; or
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, a 'Competing Business' is defined as a retail business that sells or offers bagels, cream cheese, and/or coffee products. For a business to be considered a 'Competing Business', these items must separately or in the aggregate constitute 30% or more of the business's gross revenues at any one or more retail locations.
However, this definition does not include any business that the franchisee operates under a valid franchise agreement or license agreement with Brueggers Bagels or one of its affiliates. This exception allows franchisees to potentially operate other franchise concepts without violating the non-compete clause, as long as those concepts are affiliated with Brueggers Bagels.
This restriction applies during the term of the franchise agreement. After the agreement expires, terminates, or is transferred, the franchisee is restricted from being involved with a Competing Business within a specific radius of the Brueggers Bagels location or other Brueggers Bagels restaurants. Understanding this definition is crucial for prospective franchisees to avoid potential conflicts of interest and legal issues during and after their franchise agreement.