Does the Brueggers Bagels franchise agreement create any implied third-party beneficiaries?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, under Section 22, each Indemnitee is considered a third-party beneficiary. This means that any party who is entitled to indemnification under the franchise agreement has the right to enforce the indemnification provisions directly against the franchisee.

This clause grants specific rights to those who might suffer damages or losses due to the franchisee's actions or inactions. As a third-party beneficiary, an indemnitee can take legal action directly against the franchisee to recover any losses covered by the indemnification clause, without needing to be a direct party to the franchise agreement itself.

For a prospective Brueggers Bagels franchisee, this implies a significant responsibility to understand and adhere to the indemnification obligations outlined in the franchise agreement. Failure to meet these obligations could result in direct legal action from third-party beneficiaries, leading to potential financial liabilities. Therefore, franchisees should carefully review the circumstances under which indemnification may be required and ensure they have adequate insurance and risk management strategies in place.