After the Brueggers Bagels Development Agreement expires, what geographic area restricts me from owning a Competing Business?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of one (1) year after the expiration or termination of the Development Agreement or the approved transfer of the development rights to a new owner, you will not directly or indirectly (such as through an affiliate or family members) will own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in any Competing Business which is, or is intended to be, located within the Development Area or within five (5) miles of any Bakery, except for any business operated pursuant to a valid franchise agreement with us or our affiliate, or as we otherwise approve in writing.
If you fail to or refuse to abide by any of the foregoing restrictions on competition and BFC obtains enforcement in a judicial or arbitration proceeding, the obligations under the breached restriction
will continue in effect for a period ending one (1) year after the date you begin to comply with the order enforcing the restriction.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, following the expiration or termination of the Development Agreement, you are restricted from engaging in any Competing Business within a specific geographic area for one year. This area includes the Development Area itself and extends to a five-mile radius from any Brueggers Bagels Bakery. This restriction applies to direct or indirect involvement in a Competing Business, including ownership, operation, employment, or providing assistance.
This non-compete clause is designed to protect Brueggers Bagels's market and brand presence within the designated territory. The Development Area is the territory granted to you in the Development Agreement to develop Brueggers Bagels locations. The five-mile radius around existing bakeries prevents you from leveraging knowledge and experience gained during your time as a developer to directly compete with existing Brueggers Bagels franchises in close proximity.
However, there are exceptions to this restriction. You are permitted to operate a Competing Business if it is done under a valid franchise agreement with Brueggers Bagels or its affiliate, or if Brueggers Bagels provides written approval. Additionally, if you violate the non-compete terms and Brueggers Bagels pursues legal action, the restriction remains in effect for one year after you comply with the court's order.
Prospective developers should carefully consider the implications of this non-compete agreement, especially if they plan to remain in the same geographic area after the Development Agreement expires. It is important to understand the exact boundaries of the Development Area and the location of existing Brueggers Bagels bakeries to assess the potential impact on future business ventures. Developers should also be aware that Brueggers Bagels may seek injunctive relief and recover legal costs if the non-compete agreement is violated.