In the Brueggers Bagels Development Agreement, what does the term 'Franchisor' refer to?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer is developing one or more Bruegger's ("Bakeries) pursuant to a Development Agreement (the "Development Agreement") with BRUEGGER'S FRANCHISE CORPORATION ("BFC").
The Development Agreement requires persons with legal or beneficial ownership interests in Developer to be personally bound by Developer's obligations under the Development Agreement, including restrictions on competition, confidentiality obligations, restrictions on ownership changes, and dispute resolution provisions.
All capitalized terms used in this document have the same meaning as in the Development Agreement.
You own or intend to own a legal or beneficial ownership interest in Developer.
You acknowledge and agree that: (a) your execution of this Agreement is a condition of acquiring and holding your ownership interest in Developer; and (b) you have received good and valuable consideration for executing this Agreement.
BFC may enforce this Agreement directly against you.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the term 'Franchisor' refers to Bruegger's Franchise Corporation ('BFC'). This is clarified within the context of obligations and agreements related to the Development Agreement.
Specifically, the Development Agreement outlines the relationship between the developer and BFC, where BFC grants the rights to develop Brueggers Bagels bakeries. The document emphasizes that individuals with ownership interests in the developer are bound by the obligations set forth in the Development Agreement, including restrictions on competition and confidentiality. BFC retains the right to enforce the agreement directly against these individuals.
Furthermore, the guarantee signed by individuals ensures they are bound by the franchisee's obligations, and it clarifies that the guarantee does not grant them rights to use Brueggers Bagels' marks. This underscores the franchisor's control over its brand and system, and the franchisee's responsibility to adhere to the franchisor's standards and guidelines.