What is the dependency between the Development Agreement and the Franchise Agreement for Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
1.2. To exercise your development rights, you must execute a separate Bruegger's Franchise Agreement ("Franchise Agreement") with us for each Bakery to be developed, in accordance with Section 4.1 below.
4.2. If we approve the proposed site, after we receive all of the required information from you necessary to prepare the Franchise Agreement, including the physical address of the site, we will issue the Franchise Agreement and the site will be known as the "Premises" referred to in the Franchise Agreement. You must return the executed Franchise Agreement, along with a completed set of all required exhibit documents within 30 days, of your receipt of the Franchise Agreement or we can withdraw our acceptance of the site. The terms of the Franchise Agreement shall govern the development, build-out and opening of the Bakery. The development time frame shall be governed by this Agreement.
10.1. De-Identification and Cessation of Activities.
Upon termination or expiration of this Agreement, you will have no right to establish or operate any Bakery for which a Franchise Agreement has not been executed by us prior to termination; and we will be entitled to establish, and to franchise others to establish, Bakeries at any location in the Development Area except as may be otherwise provided under the terms of any Franchise Agreement which remains in effect between us and you.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, a franchisee with a Development Agreement must execute a separate Franchise Agreement for each bakery they plan to develop. The Development Agreement outlines the development area and schedule, while the Franchise Agreement governs the specifics of operating each individual Brueggers Bagels location.
Specifically, after Brueggers Bagels approves a proposed site, they will issue a Franchise Agreement once they receive all necessary information, including the site's physical address. The franchisee must then return the executed Franchise Agreement with all required documents within 30 days. Failure to do so allows Brueggers Bagels to withdraw their acceptance of the site. The terms of the Franchise Agreement then dictate the development, build-out, and opening of the bakery, though the overall development timeline remains under the Development Agreement.
Upon termination or expiration of the Development Agreement, the franchisee loses the right to establish or operate any bakery for which a Franchise Agreement has not been executed. However, the terms of any Franchise Agreement that remains in effect will continue to be honored. This means that even if the Development Agreement ends, existing franchised locations can continue to operate under their individual Franchise Agreements.