After the Brueggers Bagels franchise is terminated or expires, for how long does the non-competition covenant apply?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, the non-competition covenant applies for one year after the franchise is terminated or expires. This restriction prevents a former franchisee from involvement with a Competing Business within the Development Area or within 5 miles of any Bakery.

This means that if a franchisee's agreement ends, either through termination or expiration, they cannot operate or be involved in a competing business within the defined geographical limits for a period of 12 months. The Development Area is defined in the Development Agreement. This restriction is designed to protect Brueggers Bagels's market share and customer base by preventing former franchisees from using their knowledge of the business to directly compete with the brand shortly after their franchise agreement ends.

Non-compete clauses are common in franchise agreements to protect the franchisor's investment in its brand and market. The specific terms, such as the duration and geographic scope, can vary. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities should they decide to leave the Brueggers Bagels system. It is important to fully understand the definition of "Competing Business" as defined in Section 11.2 of the Development Agreement to assess the scope of this restriction.