What is the exception to the Marketing Contribution for Brueggers Bagels franchisees?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, you have a required weekly Marketing Contribution equal to 3.5% of the Gross Sales of your Bakery during the preceding Accounting Week. Franchisees who entered the Bruegger's system before you (or who enter after you) may have different obligations, depending on their form of Franchise Agreement. There is no required Marketing Contribution under the License Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, MANUALS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, franchisees are generally required to make a weekly Marketing Contribution equal to 3.5% of their Bakery's Gross Sales from the preceding Accounting Week. However, there is an exception to this rule.
The exception is that there is no required Marketing Contribution under the License Agreement. This means that if a franchisee operates under a License Agreement rather than a standard Franchise Agreement, they are not obligated to contribute 3.5% of their gross sales to the marketing fund.
It is important for prospective franchisees to understand which type of agreement they will be operating under, as this will significantly impact their financial obligations to Brueggers Bagels. Franchisees who entered the Brueggers Bagels system before or after a new franchisee may also have different obligations, depending on the form of their Franchise Agreement.