Does the Disclosure Acknowledgement Statement for Brueggers Bagels state that the licensor provides any warranty concerning the restaurant or its equipment?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that, although we will provide you with basic drawings and specifications for a BRUEGGER'S BAGELS restaurant, will specify certain furniture, fixtures and equipment, and will maintain certain rights of review and/or approval under our License Agreement with you, we have not made, and you have not received or relied upon any warranty concerning the BRUEGGER'S BAGELS restaurant(s) or the drawings, specifications, furniture, fixtures and equipment. You acknowledge that you are solely responsible for, and we will have no liability or obligation in connection with, the plans or the construction or conversion remodeling of the BRUEGGER'S BAGELS restaurant(s). You acknowledge that it is solely your responsibility to insure that the construction or conversion remodeling complies with any and all laws, codes or regulations.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, franchisees acknowledge that Brueggers Bagels does not provide any warranty regarding the restaurant or its equipment. Specifically, while Brueggers Bagels will provide basic drawings and specifications, specify certain furniture, fixtures, and equipment, and maintain certain rights of review or approval, the franchisee acknowledges that they have not received or relied upon any warranty from Brueggers Bagels concerning the restaurant, drawings, specifications, furniture, fixtures, and equipment.
This means that franchisees are solely responsible for the plans, construction, or remodeling of the Brueggers Bagels restaurant and must ensure compliance with all applicable laws, codes, and regulations. This places the onus on the franchisee to conduct thorough due diligence and secure their own warranties or guarantees from contractors and suppliers.
This is a fairly standard practice in franchising, where franchisees typically bear the responsibility for construction and ensuring compliance. However, it's crucial for prospective Brueggers Bagels franchisees to understand this allocation of responsibility and factor it into their investment and operational planning. They should consult with legal and construction professionals to navigate these aspects effectively.