In the event of death, incapacity, or bankruptcy, are transfers of Brueggers Bagels franchise interests subject to the same transfer provisions?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or any Owner dies, becomes incapacitated, or enters bankruptcy proceedings, that person's executor, administrator, personal representative, or trustee must apply to us in writing within 3 months after the event (death, declaration of incapacity, or filing of a bankruptcy petition) for consent to transfer the person's interest.
The transfer will be subject to the provisions of this Section 8, as applicable.
In addition, if the deceased or incapacitated person is the Operating Partner, we will have the right (but no obligation) to take over operation of the Bakery upon giving notice to the executor, administrator, personal representative, or trustee and to manage the Bakery until the transfer is completed.
If we exercise this right, we can charge a reasonable management fee for our services.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, transfers of franchise interests due to death, incapacity, or bankruptcy are subject to the standard transfer provisions outlined in the franchise agreement. Specifically, if a franchisee or any owner dies, becomes incapacitated, or enters bankruptcy proceedings, their executor, administrator, personal representative, or trustee must apply in writing to Brueggers Bagels for consent to transfer the person's interest within 3 months of the event.
The transfer will be subject to the provisions outlined in Section 8 or 16 of the agreement, as applicable. If the deceased or incapacitated person is the Operating Partner, Brueggers Bagels has the right, but not the obligation, to take over the bakery's operation until the transfer is completed. If Brueggers Bagels exercises this right, they can charge a reasonable management fee for their services.
In cases of transfer by bequest or intestate succession, if the heirs or beneficiaries cannot meet the standard transfer conditions, the executor may transfer the decedent's interest to another successor approved by Brueggers Bagels, subject to all transfer terms and conditions in the agreement. If the interest is not disposed of within one year after the date of death or appointment of a personal representative or trustee, Brueggers Bagels can terminate the agreement.