Is the Brueggers Bagels franchise agreement binding on assignees?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to induce Bruegger's Franchise Corporation ("Franchisor") to sign the Bruegger's Bagels Franchise Agreement between Franchisor and ("Franchisee"), dated , 202 (the "Agreement"), each of the undersigned parties, jointly and severally, hereby unconditionally guarantee to Franchisor and its successors and assigns that all of Franchisee's obligations (monetary and otherwise) under the Agreement as well as any other contract between Franchisee and Franchisor (and/or Franchisor's affiliates) will be punctually paid and performed.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, the Guarantee, Indemnification, and Acknowledgment agreement is binding on assignees. Specifically, the guarantor unconditionally guarantees to Bruegger's Franchise Corporation and its successors and assigns that all of the franchisee's obligations under the Franchise Agreement will be punctually paid and performed.
This means that if a Brueggers Bagels franchisee transfers or assigns their rights and obligations under the Franchise Agreement to another party, the guarantor's obligations remain in effect. The guarantor is still responsible for ensuring that all financial and other obligations of the franchisee are met, even after the transfer.
This provision protects Brueggers Bagels by ensuring that there is always a party responsible for the franchisee's obligations, even if the original franchisee is no longer involved. It also provides assurance to Brueggers Bagels that the financial and operational standards of the franchise will be maintained, regardless of who owns or operates the franchise at any given time.