After the Brueggers Bagels franchise is terminated or expires, what is the geographic scope of the non-competition covenant?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, after the franchise is terminated or expires, the non-competition covenant restricts involvement with any competing business for one year. This restriction applies within the Development Area or within 5 miles of any Brueggers Bagels Bakery.

This means that if a franchisee's agreement is terminated or expires, they cannot operate or be involved with a competing business within their designated Development Area. Additionally, they are restricted from involvement with a competing business within a 5-mile radius of any Brueggers Bagels location. This post-term non-compete aims to protect Brueggers Bagels's market share and brand recognition by preventing former franchisees from using their knowledge of the business to directly compete in the same geographic areas.

The geographic scope of the non-compete is defined by two factors: the Development Area and a 5-mile radius around any existing Brueggers Bagels Bakery. The Development Area is likely defined in the Development Agreement and could encompass a specific territory or region granted to the franchisee. The 5-mile radius provides an additional layer of protection around all Brueggers Bagels locations, regardless of whether they are within the former franchisee's Development Area.

Prospective franchisees should carefully consider the implications of this non-competition covenant, especially if they plan to remain in the same geographic area after the franchise agreement ends. They should seek clarification on the exact definition of the Development Area and understand the potential limitations on their future business activities. It is also important to note that these terms are subject to applicable state laws, which may affect the enforceability of the non-competition agreement.