Where must disputes be submitted for mediation before bringing an action in court related to a Brueggers Bagels franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration | Section 20.3 | Before bringing an action in court, the parties must first submit the dispute to non-binding mediation (except for injunctive relief) in Colorado (subject to applicable state law).as req |
| Provision | Section in Franchise Agreement or License Agreement | Summary |
| --- | --- | --- |
| u. Dispute resolution by arbitration | Section 28.3 of the Franchise Agreement; Section 14.8 of the License Agreement | Before bringing an action in court, the parties must first submit the dispute to non-binding mediation (except for injunctive relief) in Colorado (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, both the Development Agreement and the Franchise Agreement stipulate that disputes must first undergo non-binding mediation in Colorado before any court action is initiated. This requirement applies except in cases seeking injunctive relief. The FDD specifies that this mediation requirement is subject to applicable state law.
For a prospective Brueggers Bagels franchisee, this means that if a dispute arises with the franchisor, whether related to the Development Agreement or the Franchise Agreement, the franchisee will be required to participate in mediation in Colorado. This applies before they can pursue a lawsuit, unless the franchisee is seeking injunctive relief, which is a court order to stop someone from doing something.
This mediation process is non-binding, meaning that the parties are not obligated to accept the mediator's proposed resolution. However, it is a mandatory step before litigation. Given that Brueggers Bagels's principal place of business is in Denver, Colorado, the choice of Colorado as the mediation location potentially creates additional costs and logistical challenges for franchisees located outside of Colorado. They will need to factor in travel and accommodation expenses should a dispute arise.
It is also important to note that the FDD indicates that the choice of forum and choice of law are also in Colorado, where Brueggers Bagels has its principal place of business. This concentration of legal processes in Colorado could be a significant consideration for prospective franchisees when evaluating the franchise opportunity.