Where in the Brueggers Bagels Franchise Agreement can I find information regarding restrictions on competition for franchisees, and on what page is it located?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Chunk 3 | Item 22: Contracts] (chunk_id: e8980d70-87ee-43c9-8b6d-2566141a9fcd) [Item 22: CONTRACTS]
19. RESTRICTIONS ON COMPETITION
- 19.1. During the Agreement Term. You specifically acknowledge that you will receive valuable, specialized training from us and access to confidential information regarding our operational, sales, promotional, and marketing methods and techniques of the System. You agree that, during the Agreement Term, except as we otherwise approve in writing, you will not, either directly or indirectly, for yourself or through, on behalf of, or in conjunction with any person or legal entity:
- 19.1.1. Own, maintain, operate, engage in, be employed by, provide any assistance to, or have any interest in any Competing Business, as defined below. "Competing Business" means a retail business that sells or offers bagels, cream cheese, and/or coffee products that separately or in the aggregate constitute or would constitute thirty percent (30%) or more of that business' gross revenues at any one or more retail location(s), but does not include any business that you operate under a valid franchise agreement or license agreement with us or one of our affiliates; or
- 19.1.2. Divert or attempt to divert any present or prospective business or customer to any Competing Business by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Proprietary Marks and the System.
- 19.2. After Expiration, Termination, or Transfer. 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.
19.3. Enforcement.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, information regarding restrictions on competition can be found in multiple sections of Item 22, which discusses contracts. Specifically, the Franchise Agreement requires individuals with legal or beneficial ownership interests to be personally bound by the agreement's obligations, including restrictions on competition.
During the agreement term, franchisees are restricted from owning, operating, or being involved with any "Competing Business" without written approval from Brueggers Bagels. 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. This restriction does not apply to businesses operated under a valid franchise or license agreement with Brueggers Bagels or its affiliates.
Post-termination, expiration, or transfer of the agreement, franchisees are restricted for one year from owning, operating, or being involved with a Competing Business within ten miles of the former Brueggers Bagels location or within five miles of any other Brueggers Bagels bakery. These restrictions aim to protect Brueggers Bagels' market and confidential information. Item 22 does not specify the page numbers where these restrictions are located, so prospective franchisees should consult the table of contents or search function within the FDD to locate the specific sections.