After the expiration or termination of the Brueggers Bagels License Agreement, what is the geographic limit of the non-compete restriction?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of one (1) year after the expiration or termination of the License Agreement or the approved transfer of the Bakery to a new owner, you will not directly or indirectly 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 BRUEGGER'S BAGELS restaurant, except for any business operated pursuant to a valid License Agreement with us or as we otherwise approve in writing.
If you fail or refuse to abide by any of the foregoing restrictions and BFC obtains enforcement in a judicial or arbitration proceeding, the obligations under the breached restriction will continue in effect for one (1) year after the date you begin to comply with the order enforcing the restriction.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, after the License Agreement expires or terminates, or if the Bakery is transferred to a new owner, a non-compete restriction applies for one year. During this period, the franchisee cannot directly or indirectly own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in a Competing Business.
The geographic scope of this restriction extends to any Competing Business located within ten miles of the original Brueggers Bagels Premises or within five miles of any other Brueggers Bagels restaurant. This restriction does not apply if the business is operated under a valid franchise or license agreement with Brueggers Bagels or its affiliates, or if Brueggers Bagels provides written approval.
If a franchisee fails to comply with these restrictions, and Brueggers Bagels pursues enforcement through legal or arbitration proceedings, the non-compete obligations will remain in effect for one year after the franchisee begins to comply with the enforcement order. This ensures Brueggers Bagels can protect its market and brand integrity even if initial compliance is delayed.