What is the current policy regarding Company-owned Brueggers Bagels Bakeries contributing to the SMF?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
MF; and
- You must spend 50% of the Marketing Contribution (that is, 1.75% of your Gross Sales) on LSM.
SMF. The SMF is a common fund for the advertising and promotion of Bruegger's Bakeries. There is no contractual obligation for Company-owned Bakeries to contribute to the SMF. Company-ow
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, MANUALS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, there is no contractual obligation for company-owned bakeries to contribute to the Systemwide Marketing Fund (SMF). While company-owned bakeries have contributed to the SMF at times in the past, the current policy is that they do not contribute.
This policy could be a disadvantage for franchisees. If company-owned stores do not contribute to the SMF, the financial burden of advertising and promotion falls primarily on the franchisees. This could limit the funds available for marketing initiatives and potentially reduce the overall effectiveness of advertising campaigns.
Prospective franchisees should inquire about the potential for company-owned stores to contribute to the SMF in the future and how this might impact the fund's resources and marketing strategies. Understanding the long-term plans for SMF contributions can help franchisees assess the financial implications and potential benefits of the marketing programs.