What is the Development Fee required to be paid to Brueggers Bagels upon execution of the Development Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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 exhausted, as follows: We will apply Ten Thousand Dollars ($10,000 of the Development Fee paid by you toward the Initial Franchise Fee for the first three Bakeries that you open under your Development Agreement.
Additional portions of the Development Fee will be applied to subsequent Initial Franchise Fees upon the signing of each subsequent Franchise Agreement at the rate of Five Thousand Dollars ($5,000) per Bakery, with the balance of the Initial Franchise Fee of Thirty Thousand Dollars ($30,000) payable when you sign each subsequent Franchise Agreement.
All amounts collected shall be deemed fully earned immediately upon receipt and shall be non-refundable.
If you fail to open a Bakery within the time period specified in the Development Schedule, or if fewer than the required number of Bakeries are in operation on any deadline specified in the Development Schedule, we will have the option to terminate this Agreement by written notice to you.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
Based on the 2025 Brueggers Bagels Franchise Disclosure Document, to exercise development rights, a franchisee must execute a separate Bruegger's Franchise Agreement for each bakery to be developed. The initial franchise fee for each bakery is $30,000. A portion of the Development Fee is applied against this initial franchise fee.
Specifically, $10,000 of the Development Fee is applied toward the Initial Franchise Fee for each of the first three Brueggers Bagels bakeries opened under the Development Agreement. For subsequent bakeries, $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 fees 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 or does not have the required number of bakeries in operation by the deadlines in the Development Schedule, Brueggers Bagels has the option to terminate the Development Agreement.