When is the Development Fee due to Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount (Note 1) | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Development Fee (Note 2) | $10,000 per Bakery you commit to open; minimum commitment is two Bakeries | Lump sum | Upon signing the Development Agreement | Us |
| Total | $20,000 | |||
| (Note 3) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the development fee is due upon signing the Development Agreement. The development fee is $10,000 per Bakery that the franchisee commits to open, with a minimum commitment of two Bakeries, totaling $20,000. This fee is paid in a lump sum to Brueggers Bagels.
This means that a prospective franchisee entering into a Development Agreement with Brueggers Bagels must be prepared to pay the full development fee upfront when the agreement is signed. This fee secures the franchisee's rights to develop a specified number of Brueggers Bagels locations within a defined territory and timeframe. It's important to note that this fee is separate from the initial franchise fee required for each individual bakery.
It is important for prospective franchisees to carefully review the Development Agreement and understand all the terms and conditions related to the development fee, including any potential refunds or credits that may be applicable. Additionally, franchisees should factor this upfront cost into their overall initial investment and financial planning for developing multiple Brueggers Bagels locations.