After the expiration or termination of the Brueggers Bagels Franchise Agreement, what is the geographic limit within which I cannot be involved in a Competing Business?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that, except pursuant to other Franchise Agreements with us or our affiliates, or as we otherwise approve in writing, you will not, for one (1) year after the expiration or termination of this Agreement or the approved transfer of this Agreement to a new franchisee, either directly or indirectly, for yourself or through, on behalf of, or in conjunction with any person or legal entity, own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in any Competing Business which is, or is intended to be, located within ten (10) miles of the Premises or within five (5) miles of any other Bakery.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, for one year after the expiration, termination, or approved transfer of the franchise, you are restricted from involvement in a Competing Business. This restriction applies within a 10-mile radius of your former Brueggers Bagels location (the Premises) or within a 5-mile radius of any other Brueggers Bagels bakery.
A "Competing Business" is defined as a retail business that sells bagels, cream cheese, and/or coffee products, where these items constitute 30% or more of the business's gross revenues. This definition is crucial because it clarifies the scope of the non-compete clause, focusing on businesses that directly compete with Brueggers Bagels' core offerings.
However, there are exceptions to this restriction. You are permitted to be involved in a business operated under a valid franchise or license agreement with Brueggers Bagels or its affiliates, or if Brueggers Bagels provides written approval. This allows for potential continued involvement with the brand under different arrangements.
The FDD also states that if a franchisee fails to comply with these restrictions, and Brueggers Bagels pursues legal or arbitration proceedings to enforce the non-compete, the restriction remains in effect for one year after the franchisee begins to comply with the enforcement order. This clause underscores the importance of adhering to the non-compete agreement and the potential for extended restrictions if non-compliance leads to legal action.