Does the Disclosure Acknowledgement Statement for Brueggers Bagels require the licensee to acknowledge their willingness to undertake business risks?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You make the following representations to us, and we rely on them in granting you a license. If any statement is not correct, or if you are aware of exceptions to them, note them after #9 below.
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- You recognize and understand that business risks which exist in connection with the ownership, development and operation of any business make the success or failure of the BRUEGGER'S BAGELS restaurant license subject to many variables, including your skills and abilities, competition, interest rates, the economy, inflation, location(s), operation, labor and supply costs, lease terms and costs and the marketplace. Further, you understand that the economic and business factors that exist at the time you open your license may change. You acknowledge that you have conducted an independent investigation of the business venture contemplated by the License Agreement and recognize that the success of the venture involves substantial business risk and will be dependent primarily on your ability as an independent businessperson. You hereby acknowledge your willingness to undertake these business risks.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the licensee is required to acknowledge their willingness to undertake business risks. The Disclosure Acknowledgement Statement includes a representation that the licensee understands the business risks associated with owning and operating a Brueggers Bagels restaurant. These risks include factors like the licensee's skills, competition, interest rates, economic conditions, inflation, location, operational costs, labor and supply expenses, lease terms, and the marketplace.
The statement emphasizes that economic and business conditions can change after the franchise opens, and the success of the venture depends largely on the franchisee's capabilities as an independent businessperson. By signing the Disclosure Acknowledgement Statement, the licensee confirms they have conducted their own independent investigation of the business opportunity and are willing to accept these risks.
This acknowledgement is a standard practice in franchising, ensuring that franchisees are aware of the potential challenges and uncertainties involved in owning a franchise. It protects Brueggers Bagels by confirming that franchisees are not relying solely on the franchisor's promises of success and have made an informed decision to invest in the franchise.