How is the Development Fee for Brueggers Bagels calculated?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
the right, and you undertake the obligation, pursuant to the terms and conditions of this Agreement, to develop _____________ (___) Bakeries, solely within the territory defined in Exhibit A to this Agreement (the "Development Area"). The Bakeries will be located only at the specific locations we approve in writing pursuant to Section 4.1 below. The Bakeries will be developed in accordance with the schedule set forth in Exhibit B to this Agreement (the "Development Schedule"). Exhibit A, the Development Area and Exhibit B the Development Schedule are incorporated herein as if fully set forth in this Agreement.
- 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. The initial franchise fee payable for each Bakery is Thirty Thousand and No/100 Dollars ($30,000) ("Initial Franchise Fee"). A portion of the Development Fee paid in accordance with Section 3 below will be applied against the Initial Franchise Fee for each Bakery, until the Development Fee is
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, a portion of the Development Fee is applied to the initial franchise fee for each bakery. The initial franchise fee for each bakery is $30,000.
For the first three bakeries opened under the Development Agreement, Brueggers Bagels will apply $10,000 of the Development Fee towards the Initial Franchise Fee. For each subsequent bakery, $5,000 of the Development Fee will be applied to each Initial Franchise Fee. The franchisee is responsible for paying the balance of the $30,000 Initial Franchise Fee when signing each subsequent Franchise Agreement.
All amounts collected by Brueggers Bagels are deemed fully earned immediately upon receipt and are non-refundable. If a franchisee fails to open a bakery within the specified time period in the Development Schedule, or if the required number of bakeries are not in operation by the deadline, Brueggers Bagels has the option to terminate the Development Agreement.