Are the default and termination terms in the Brueggers Bagels franchise agreement subject to state statutes?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, the terms and conditions regarding default and termination within the franchise agreement are subject to any applicable state statutes or regulations concerning franchise termination. This means that in addition to the terms outlined in the Brueggers Bagels franchise agreement, state laws may provide additional protections or requirements for franchisees regarding termination.

For a prospective Brueggers Bagels franchisee, this is an important consideration because state laws can vary significantly. Some states have franchise relationship laws that limit the circumstances under which a franchisor can terminate a franchise agreement, while others may require specific notice periods or opportunities to cure a default. Understanding the specific laws in the state where the franchise will operate is crucial.

This clause provides a degree of protection for the franchisee, as Brueggers Bagels must adhere to state regulations, which may be more favorable to the franchisee than the standard terms of the franchise agreement. However, it also means that the franchisee must be aware of and understand these state-specific regulations, potentially requiring legal counsel to navigate these complexities. It is common practice for franchise agreements to be subject to state statutes, especially concerning termination, to ensure compliance with local laws and provide a baseline of franchisee protection.