Can a Brueggers Bagels franchisee give away their interest in the agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
8.5.2.* That you are not in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you and us or our affiliates;
- 8.5.3. That the transferor executes a general release, in a form satisfactory to us, of any and all claims against us, our affiliates and their respective past, present, and future officers, directors, shareholders, and employees, in their corporate and individual capacities;
- 8.5.4. That the transferee (and if the transferee is a corporation, partnership, or limited liability company, such owners of a beneficial interest in the transferee as we may request) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge all of your obligations under this Agreement; or, at our option, enter into our then current form of Franchise Agreement; and, if the transferor guaranteed your obligations under this Agreement, that the transferee
guarantee the performance of all such obligations in writing in a form satisfactory to us;
- 8.5.5. If the transferee is an existing Bruegger's developer or franchisee, that the transferee is not in default under its agreements with us and has a good record of customer service and compliance with our operating standards;
- 8.5.6. That the transferee, whether or not an existing Bruegger's developer or franchisee, demonstrates to our satisfaction that he or she meets (or, if the transferee is a business entity, that its owners and management team meet) our educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the business contemplated hereunder (as may be evidenced by prior related business experience or otherwise); and has adequate financial resources and capital to fulfill your obligations hereunder in a timely manner; and
- 8.5.7. That the transferor pays a transfer fee of Five Thousand Dollars ($5,000)
- 8.5.8. That the transferee (if an entity, i
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, a franchisee's ability to transfer their interest in the franchise agreement is subject to specific conditions and requires the franchisor's consent. If a franchisee wishes to transfer their interest, Brueggers Bagels requires that all outstanding obligations to them and their affiliates are satisfied and that the franchisee is not in default of any provision of the Franchise Agreement.
Brueggers Bagels also stipulates that the potential transferee must meet certain criteria. The transferee cannot be in default under any existing agreements with Brueggers Bagels and must have a good record of customer service and compliance with the company's operating standards. Furthermore, the transferee must demonstrate that they meet Brueggers Bagels' educational, managerial, and business standards, possess a good moral character, business reputation, and credit rating, and have the aptitude, ability, and adequate financial resources to fulfill the obligations under the franchise agreement.
Additionally, Brueggers Bagels requires the transferor to pay a transfer fee of $5,000. The transferee, along with their operating partner and any employees who have not completed an approved training program, must also complete any training programs in effect for new franchisees at their own expense. In the event of death, incapacitation, or bankruptcy, the executor, administrator, personal representative, or trustee must apply in writing to Brueggers Bagels for consent to transfer the person's interest within 3 months, subject to the same transfer provisions.