Are the costs for a Brueggers Bagels licensee's participation in the website program included in the Royalty Fee?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensor also may require Licensee to execute or assent to a terms of use agreement relating to the Web site.
- (iv) The parties acknowledge that costs attributable to Licensee's participation in the Web site Program shall be in addition to the Royalty Fee.
If Licensor elects any time to enhance the function of the Web site to enable System licensees to conduct ecommerce activities on or through the web site (including customer order placement), it will not be required to provide Licensee access to or permit Licensee to participate in, any such ecommerce activities, unless Licensee agrees to obtain all equipment required by Licensor therefor and pay Licensor's then-current Web site participation fees.
- (v) Notwithstanding the foregoing, Licensee may be required to participate in Licensor's marketing and/or advertising programs at Licensor's discretion.
In this event, Licensee shall pay Licensor for its participation in the marketing and/or advertising program and reimburse Licensor for its costs concerning same, which may be in the form of either a pre-determined marketing contribution (based on a percentage of sales, not to exceed 1.0% of Gross Sales), or via direct invoice either from Licensor or a third party which may produce marketing materials on behalf of Licensor.
For the avoidance of doubt, these payments and costs are in addition to the Royalty Fee.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the costs associated with a licensee's participation in the website program are separate from the Royalty Fee. The Royalty Fee is a recurring fee, calculated as 5.0% of Gross Sales, which licensees pay for the right to use Brueggers Bagels' trademarks and system.
Brueggers Bagels may require licensees to agree to a terms of use agreement for the website. If Brueggers Bagels enhances the website to include e-commerce activities, licensees may be required to obtain specific equipment and pay additional website participation fees to access these features. These costs are in addition to the standard Royalty Fee.
Licensees may also be required to participate in Brueggers Bagels' marketing and advertising programs, incurring further costs. These marketing contributions can be a percentage of sales, up to 1.0% of Gross Sales, or direct invoices from Brueggers Bagels or a third party. These marketing and advertising costs are also separate from the Royalty Fee.