For a Brueggers Bagels franchise, what are the three requirements that the designated Operating Partner must meet?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.2. Operating Partner. If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you must designate an "Operating Partner" in Exhibit A. The Operating Partner must be an individual approved by us who must (a) directly or indirectly own and control, or have the right to own and control (subject to terms and conditions reasonably acceptable to us), not less than 10% of your equity; (b) have the authority to bind you regarding all decisions regarding your development rights and Bakeries; and (c) have completed our training program to our satisfaction.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, if the franchisee is a business corporation, partnership, limited liability company or other legal entity, they must designate an Operating Partner in Exhibit A. This Operating Partner is subject to certain requirements.
The first requirement is that the Operating Partner must be an individual approved by Brueggers Bagels. Secondly, the Operating Partner must directly or indirectly own and control, or have the right to own and control (subject to terms and conditions reasonably acceptable to Brueggers Bagels), not less than 10% of the franchisee's equity. This ensures the Operating Partner has a vested interest in the success of the Brueggers Bagels business.
Thirdly, the Operating Partner must have the authority to bind the franchisee regarding all decisions regarding their development rights and Bakeries. This means the Operating Partner has the power to make crucial decisions on behalf of the franchisee. Finally, the Operating Partner must have completed the Brueggers Bagels training program to the franchisor's satisfaction, ensuring they are well-versed in the Brueggers Bagels system and standards.