After the Brueggers Bagels franchise agreement expires or terminates, what is the geographic restriction within which I cannot operate a Competing Business?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of one (1) year after the expiration or termination of the Franchise 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 Bakery, except for any business operated pursuant to a valid franchise agreement or license agreement with us or one of our affiliates, 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 the 2025 Brueggers Bagels Franchise Disclosure Document, for one year after the franchise agreement expires or terminates, or after an approved transfer of the bakery to a new owner, a franchisee is restricted from engaging in any Competing Business. This restriction applies if the Competing Business is located within ten miles of the Brueggers Bagels premises or within five miles of any other Brueggers Bagels bakery.
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 proceedings, the restriction remains in effect for one year after the franchisee begins to comply with the enforcement order.
This non-compete clause is a standard element in franchise agreements to protect the brand and market share of Brueggers Bagels. Prospective franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area after the franchise agreement ends. It is important to understand the definition of a "Competing Business" as defined in the FDD to fully grasp the scope of this restriction.