When is the Brueggers Bagels development fee due?
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. Therefore, the minimum development fee is $20,000. This fee is paid in a lump sum to Brueggers Bagels.
It is important to note that this development fee is separate from the initial franchise fee required for each individual Brueggers Bagels location. However, the FDD states that if a franchisee has signed a Development Agreement and is in compliance with its obligations, Brueggers Bagels will apply a credit from the development fee toward the initial franchise fee. The amount of the credit will be $10,000 for each Bakery the franchisee agrees to develop.
Prospective franchisees should carefully consider the timing of this payment and ensure they have the necessary funds available when signing the Development Agreement. They should also understand the conditions under which the development fee can be credited towards the initial franchise fee for each location. This information is crucial for financial planning and understanding the overall investment required to develop multiple Brueggers Bagels locations.