After the expiration or termination of the Brueggers Bagels Franchise Agreement, for how long am I restricted from being 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's 2025 Franchise Disclosure Document, franchisees face certain restrictions on competitive activities after the franchise agreement expires or is terminated. Specifically, for one year following the expiration, termination, or approved transfer of the bakery to a new owner, a franchisee cannot directly or indirectly engage in any competing business within a defined geographic area.
The restricted area includes a ten-mile radius from the original Brueggers Bagels location (the Premises) or a five-mile radius from any other Brueggers Bagels restaurant. This restriction applies to owning, maintaining, operating, being employed by, providing assistance to, or having any interest in a competing business. The term "Competing Business" refers to any retail business that sells bagels, cream cheese, and/or coffee products that constitute 30% or more of the business's gross revenues.
However, this restriction does not apply if the franchisee operates a business under a valid franchise or license agreement with Brueggers Bagels or its affiliates, or if Brueggers Bagels provides written approval. Furthermore, if a franchisee violates these restrictions and Brueggers Bagels pursues legal action to enforce them, the restriction period will be extended by one year from the date the franchisee complies with the enforcement order. This ensures that Brueggers Bagels can protect its market and brand integrity even after a franchise agreement ends.