What constitutes abandonment of a Brueggers Bagels Bakery that could lead to termination?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.2. Material Default With No Opportunity to Cure.
You shall be deemed to be in Material Default and we may, at our option, terminate this Agreement and all rights granted hereunder, without affording you any opportunity to cure the default, effective immediately upon receipt of notice of such termination from us to you, upon the occurrence of any of the following events:
9.2.1. There is a default under any Franchise Agreement for which there is no opportunity to cure;
9.2.2. Failure to satisfy the Development Schedule as described in Section 1.3 of this Agreement;
9.2.3. If you cease to operate or otherwise abandon a Bakery, lose the right to possession of the Premises, or forfeit the right to do or transact business in the jurisdiction where the Premises for a Bakery are located.
However, if, through no fault of your own, the Premises are damaged or destroyed by an event such that repairs or reconstruction cannot be completed within sixty (60) days thereafter, then you will have thirty (30) days after that event in which to apply for our approval to relocate and/or reconstruct the Bakery, which approval will not be unreasonably withheld;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, ceasing to operate or abandoning a bakery location constitutes a material default that allows Brueggers Bagels to terminate the franchise agreement. This termination can occur immediately upon notice, without any opportunity for the franchisee to correct the issue.
However, there is an exception: if the premises are damaged or destroyed through no fault of the franchisee, and repairs or reconstruction cannot be completed within 60 days, the franchisee has 30 days after the event to apply for Brueggers Bagels's approval to relocate or reconstruct the bakery. This approval will not be unreasonably withheld. This clause provides a limited window for franchisees to address unforeseen circumstances that render their current location unusable.
This provision highlights the importance of maintaining continuous operation of the Brueggers Bagels franchise. Franchisees need to be aware of the conditions under which their agreement can be terminated without a chance to rectify the situation. It also underscores the need for adequate insurance coverage to address potential damages or destruction of the premises, and the importance of quickly seeking approval for relocation or reconstruction in such events.