Can Brueggers Bagels franchise or license others to operate outlets at Non-Traditional Locations under the Bruegger's name within a franchisee's Protected Area?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, Brueggers Bagels retains the right to franchise or license others to operate outlets at Non-Traditional Locations under the Bruegger's name, whether inside or outside of a franchisee's Development Area. A "Non-Traditional Location" is defined as a facility where the primary function is not a Bakery business, examples include performing arts centers, arenas, stadiums, shopping malls, and more.

This means that even if a franchisee has a protected area, Brueggers Bagels can still establish or franchise Non-Traditional Locations within that area. This could potentially lead to competition within a franchisee's territory, although these locations are intended to be in venues where a full-service bakery is not the primary focus.

This clause is important for prospective franchisees to consider, as it clarifies the extent of the territorial protection offered by Brueggers Bagels. While a franchisee may have some territorial protection, Brueggers Bagels retains the right to expand through Non-Traditional Locations, which could impact the franchisee's business. Franchisees should carefully evaluate the potential impact of this clause on their investment and discuss any concerns with Brueggers Bagels before signing the agreement.