When must a Brueggers Bagels franchisee pay the balance of the Franchise Fee for an approved site?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If we approve the proposed site, after we receive all of the required information from you necessary to prepare the Franchise Agreement, including the physical address of the site, we will issue the Franchise Agreement and the site will be known as the "Premises" referred to in the Franchise Agreement. You must return the executed Franchise Agreement, along with a completed set of all required exhibit documents within 30 days, of your receipt of the Franchise Agreement or we can withdraw our acceptance of the site. The terms of the Franchise Agreement shall govern the development, build-out and opening of the Bakery. The development time frame shall be governed by this Agreement. Concurrently with the Franchise Agreement you and your owners must execute and deliver a general release (substantially in the form of the Release attached to the Franchisor's Franchise Disclosure Document) of any and all claims against us and our affiliates, officers, directors, employees, agents, successors and assigns, subject to any limits imposed by applicable law. No site will be deemed accepted unless we have accepted it in writing. You must pay us the balance of the Franchise Fee when you execute and return the Franchise Agreement for the approved site.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, after the franchisor approves the proposed site for a new bakery, the franchisee must return the executed Franchise Agreement, along with all required exhibit documents, within 30 days of receipt. When the franchisee executes and returns the Franchise Agreement for the approved site, they must also pay the balance of the Franchise Fee at that time.
This means that a prospective Brueggers Bagels franchisee needs to have the funds for the remaining franchise fee readily available once a site is approved. The franchisee should factor in the 30-day window for returning the signed agreement and making the payment to avoid any delays or risk the franchisor withdrawing acceptance of the site.
It is important for potential franchisees to carefully review the Franchise Agreement and all exhibit documents before signing and submitting them with the balance of the franchise fee. Seeking legal and financial advice during this stage is crucial to ensure full understanding of the obligations and terms outlined in the agreement.