What is considered a 'Non-Traditional Location' under the Brueggers Bagels Development Agreement?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, a Non-Traditional Location is defined as a facility where the primary function is not a restaurant business. These locations can include, but are not limited to, performing arts centers, arenas, stadiums, shopping malls, department stores, retail stores, wholesale clubs, grocery stores, supermarkets, casinos, amusement parks, fairgrounds, colleges or universities, factories, hospitals, penal institutions, military bases, airports, turnpikes, limited access highway rest stops, or other transportation facilities.

This definition is important for prospective franchisees because it clarifies the types of locations where Brueggers Bagels may operate or franchise outlets, even within a franchisee's development area. Brueggers Bagels retains the right to operate or franchise others to operate in these Non-Traditional Locations, regardless of their proximity to a franchisee's existing bakery. This means that a franchisee's protected area may not extend to these types of locations.

For a potential Brueggers Bagels franchisee, understanding this definition is crucial for assessing the potential for competition within their market. While a franchisee may have some territorial protection for traditional bakery locations, Brueggers Bagels can still establish a presence in Non-Traditional Locations within or outside the protected area. This could impact the franchisee's revenue potential and overall business strategy. Therefore, it is essential to consider the prevalence of these types of locations within the desired territory and their potential impact on the franchise's performance.