What is the effect of a party failing to exercise a power reserved to it in the Brueggers Bagels franchise agreement?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, if a franchisee fails to open a bakery within the time specified in the Development Schedule, or if the required number of bakeries are not in operation by the deadlines outlined in the Development Schedule, Brueggers Bagels has the option to terminate the Development Agreement by providing written notice. This clause ensures that Brueggers Bagels can maintain its growth strategy and market presence.

This termination right is in addition to any other remedies Brueggers Bagels may have if the franchisee fails to meet the Development Schedule. This means that Brueggers Bagels isn't limited to just terminating the agreement; they can also pursue other legal or contractual remedies available to them. This provision protects Brueggers Bagels from potential losses or damages resulting from the franchisee's failure to develop the agreed-upon number of locations within the specified timeframe.

For a prospective franchisee, this highlights the importance of carefully reviewing and understanding the Development Schedule before signing the Development Agreement. Franchisees need to ensure they have the resources and capabilities to meet the development obligations. Failure to do so could result in the termination of the agreement and the loss of any fees paid to Brueggers Bagels. This is a standard practice in franchising, where franchisors set development schedules to ensure consistent brand growth and market penetration.