In the context of the agreement, what does 'Developer' refer to for a Brueggers Bagels franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
THE SUCCESS OF DEVELOPER IN OPERATING A FRANCHISE IS SPECULATIVE AND SHALL DEPEND ON MANY FACTORS INCLUDING, TO A LARGE EXTENT, DEVELOPER'S INDEPENDENT BUSINESS ABILITY. THIS OFFERING IS NOT A SECURITY AS THAT TERM IS DEFINED UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THE OBLIGATION TO TRAIN, MANAGE, PAY, RECRUIT AND SUPERVISE EMPLOYEES OF THE BAKERY RESTS SOLELY WITH DEVELOPER.
DEVELOPER: BRUEGGER'S FRANCHISE CORPORATION (Developer) Print Name: Print Name:
EXHIBIT A TO BRUEGGER'S DEVELOPMENT AGREEMENT DEVELOPMENT AREA
The Development Area (see Section 1.1) will be the following:
EXHIBIT B TO BRUEGGER'S DEVELOPMENT AGREEMENT DEVELOPMENT SCHEDULE
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, 'Developer' refers to the entity or individual who obtains the right to develop one or more Brueggers Bagels Bakeries within a specific territory, as outlined in the Development Agreement. This agreement requires individuals with ownership interests in the Developer to be personally bound by the Developer's obligations, including those related to competition, confidentiality, and dispute resolution. Essentially, the Developer is the party responsible for establishing multiple Brueggers Bagels locations according to an agreed-upon schedule and within a defined area.
The success of the Developer in operating a Brueggers Bagels franchise is acknowledged as speculative and dependent on various factors, including the Developer's business abilities. The Developer is solely responsible for training, managing, paying, recruiting, and supervising the Bakery's employees. This highlights the significant business risk and the reliance on the Developer's capabilities as an independent businessperson to ensure the venture's success.
Furthermore, the Development Agreement mandates that the Developer execute a separate Brueggers Bagels Franchise Agreement for each Bakery to be developed. Failure to open a Bakery within the specified timeframe or to have the required number of Bakeries in operation by the deadlines can result in the termination of the Development Agreement. This underscores the importance of adhering to the Development Schedule and fulfilling the obligations outlined in the agreement to maintain the development rights.