Does a Brueggers Bagels franchisee receive an exclusive territory under the Development Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not receive an exclusive territory under the License Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Development Agreement. If you sign a Development Agreement, it will define a specific geographic area within which you will have the right to develop Bakeries (the "Development Area"). We will negotiate the boundaries of the Development Area with you. We focus on various factors, including natural and political boundaries, population density, advertising markets, the proximity of other Bakeries and/or development areas, and other relevant geographic and demographic factors in negotiating the Development Area. The Development Agreement will include, as an exhibit, a description of the negotiated Development Area. You may not modify the Development Area without our prior written approval, which we may withhold in our sole discretion. You and we will also agree on the number of Bakeries that you will develop in your Development Area and the pace at which you must build them.
You do not receive an exclusive territory under the Development Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, while the Development Agreement is in effect, we will not establish within the Development Area, or franchise others to establish within the Development Area, the same type of Bakeries that you have the right to develop within the
Development Area. The restriction on Bakeries of the same type does not apply to Bruegger's outlets at Co-Branded Locations, Licensed Bakeries at non-traditional facilities, sales of Bruegger's products through other channels of distribution, or sales of Bruegger's-branded products or similar products and services through other brands that we or our affiliates control or may acquire in the Development Area, as described below in this Item.
Your right to develop Bakeries in the Development Area is contingent on satisfaction of the development schedule attached to your Development Agreement (the "Development Schedule"). The Development Schedule sets out the number of Bakeries that you must develop and the dates by which they must be open. If you fail to meet the Development Schedule, we can terminate your right to develop new Bakeries in the Development Area.
If the Development Agreement is terminated or expires, we can own, operate, franchise, and license others to operate Bakeries in the Development Area.
You will not have any options, rights of first refusal, or similar rights to acquire additional franchises, development rights, or other rights under the Development Agreement. Other than your obligation to meet the Development Schedule, continuation of your rights regarding the Development Area are not contingent upon your having met any particular sales volume, market penetration, or any other contingency, and we don't have any right to alter the Development Area provided under your Development Agreement.
Source: Item 12 — TERRITORY (FDD pages 42–45)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, a franchisee does not receive an exclusive territory under the License Agreement. However, if a franchisee signs a Development Agreement, it will define a specific geographic area, referred to as the "Development Area", within which the franchisee has the right to develop Bakeries. Brueggers Bagels negotiates the boundaries of the Development Area, considering factors such as natural and political boundaries, population density, advertising markets, and the proximity of other Bakeries and/or development areas. The Development Agreement includes a description of the negotiated Development Area as an exhibit, and the franchisee cannot modify the Development Area without Brueggers Bagels' prior written approval. The franchisee and Brueggers Bagels will agree on the number of Bakeries to be developed in the Development Area and the pace at which they must be built.
While the Development Agreement is in effect, Brueggers Bagels will not establish or franchise others to establish the same type of Bakeries within the Development Area. However, this restriction does not apply to Bruegger's outlets at Co-Branded Locations, Licensed Bakeries at non-traditional facilities, sales of Bruegger's products through other channels of distribution, or sales of Bruegger's-branded products or similar products and services through other brands that Brueggers Bagels or its affiliates control or may acquire in the Development Area. The franchisee's right to develop Bakeries in the Development Area is contingent on meeting the development schedule outlined in the Development Agreement, which specifies the number of Bakeries to be developed and the dates by which they must be open. Failure to meet the Development Schedule may result in the termination of the franchisee's right to develop new Bakeries in the Development Area.
If the Development Agreement is terminated or expires, Brueggers Bagels has the right to own, operate, franchise, and license others to operate Bakeries in the Development Area. The franchisee will not have any options, rights of first refusal, or similar rights to acquire additional franchises, development rights, or other rights under the Development Agreement. The continuation of the franchisee's rights regarding the Development Area is not contingent upon meeting any particular sales volume, market penetration, or any other contingency, other than the obligation to meet the Development Schedule, and Brueggers Bagels does not have the right to alter the Development Area provided under the Development Agreement.