What is the Developer acknowledging about the terms, conditions and covenants contained in the Brueggers Bagels agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You make the following representations to us, and we rely on them in entering into the Agreement. If any statement is not correct, or if you are aware of exceptions to them, note them after #9 below.
You recognize and understand that business risks which exist in connection with the ownership, development and operation of any business make the success or failure of the Bakery franchise subject to many variables, including your skills and abilities, competition, interest rates, the economy, inflation, location(s), operation, labor and supply costs, lease terms and costs and the marketplace.
Further, you understand that the economic and business factors that exist at the time you open your franchise may change.
You acknowledge that you have conducted an independent investigation of the business venture contemplated by the Agreement and recognize that the success of the venture involves substantial business risk and will be dependent primarily on your ability as an independent business person.
You hereby acknowledge your willingness to undertake these business risks.
You acknowledge that you received our Franchise Disclosure Document ("FDD") at least 14 days prior to the date you executed the Agreement or paid us any money for the franchise.
You acknowledge that you have received, had the opportunity to personally read and review, and understand the FDD, Agreement and attachments.
You acknowledge that we have permitted you ample time and opportunity to consult with advisors of your own choosing about the potential benefits and risks associated with operating a Bruegger's franchise and entering into an Agreement.
You acknowledge that you will independently evaluate and investigate the proposed site(s) for each Bruegger's and the lease or purchase agreement for the site(s).
You acknowledge that you bear primary responsibility for selecting the site(s) and negotiating the terms and conditions of your lease(s), sublease(s) or purchase agreement(s) for the site(s).
You acknowledge that, although we will provide you with basic drawings and specifications for a Bruegger's restaurant, will specify certain furniture, fixtures and equipment, and will maintain certain rights of review and/or approval under our Development Agreement and/or Franchise Agreement with you, we have not made, and you have not received or relied upon any warranty concerning the Bruegger's restaurant(s) or the drawings, specifications, furniture, fixtures and equipment.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, a developer acknowledges several key aspects of the agreement. Specifically, they recognize and understand the inherent business risks associated with owning, developing, and operating a Brueggers Bagels franchise. These risks are subject to many variables, including the developer's skills and abilities, competition, interest rates, economic conditions, inflation, location, operational costs, labor and supply expenses, lease terms, and overall marketplace dynamics. The developer also acknowledges that these economic and business factors can change over time.
Furthermore, the developer confirms they have conducted an independent investigation of the Brueggers Bagels business venture and understand that its success depends primarily on their capabilities as an independent businessperson. They acknowledge their willingness to undertake these business risks. This indicates that Brueggers Bagels wants to ensure that developers are fully aware of the challenges and uncertainties involved in the franchise, and that their success is not guaranteed by the franchisor.
In addition, the developer acknowledges receiving the Franchise Disclosure Document (FDD) at least 14 days before signing the License Agreement or paying any money for the license. They confirm they have had the opportunity to read, review, and understand the FDD, License Agreement, and all attachments. Brueggers Bagels also states that they have allowed the developer ample time to consult with advisors regarding the potential benefits and risks of operating a Brueggers Bagels restaurant license and entering into the License Agreement. This is a standard practice in franchising, ensuring franchisees have sufficient time and resources to make an informed decision.
Finally, the developer acknowledges their responsibility to independently evaluate and investigate proposed sites for each Brueggers Bagels restaurant, as well as the lease or purchase agreements for those sites. They bear the primary responsibility for selecting the sites and negotiating the terms and conditions of their leases, subleases, or purchase agreements. While Brueggers Bagels will provide basic drawings and specifications for the restaurant and specify certain furniture, fixtures, and equipment, the developer acknowledges that they have not received or relied upon any warranty concerning the restaurants or these items. This highlights the importance of due diligence on the part of the franchisee in site selection and lease negotiation, which are critical factors in the success of the franchise.