After the expiration or termination of the Brueggers Bagels License Agreement, for how long is there a restriction on involvement with 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, if the License Agreement expires or is terminated, or if the Bakery is transferred to a new owner, the franchisee is restricted from involvement with a Competing Business for one year. This restriction prevents the franchisee from owning, maintaining, operating, or being employed by a Competing Business within ten miles of the former Brueggers Bagels location or within five miles of any other Brueggers Bagels restaurant.
This restriction does not apply if the franchisee operates under a valid franchise or license agreement with Brueggers Bagels or its affiliates, or if Brueggers Bagels provides written approval. A "Competing Business" is defined as a retail business that sells bagels, cream cheese, and/or coffee products that constitute 30% or more of the business's gross revenues.
If a franchisee fails to comply with these restrictions, and Brueggers Bagels pursues enforcement through legal proceedings, the restriction will remain in effect for one year after the franchisee begins to comply with the enforcement order. This ensures that Brueggers Bagels can protect its market and brand integrity even after a franchise agreement ends.