Is a Brueggers Bagels franchisee required to have their annual financial statements reviewed by an independent certified public accountant?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees are required to have their annual financial statements reviewed by an independent certified public accountant. However, Brueggers Bagels does not designate or approve specific vendors for these accounting services, allowing franchisees to choose their own qualified professional. This requirement ensures that the financial records of each franchise location are accurate and reliable, providing a clear picture of the business's financial health.

This requirement is fairly standard in the franchise industry, as it helps maintain financial transparency and accountability across the entire Brueggers Bagels system. By using an independent CPA, franchisees can ensure that their financial statements are prepared in accordance with generally accepted accounting principles (GAAP) and that any potential issues are identified and addressed promptly. This can be particularly beneficial for franchisees who may not have extensive financial expertise themselves.

While Brueggers Bagels mandates the review, the franchisee has the autonomy to select their own independent certified public accountant. This flexibility allows franchisees to find a CPA who meets their specific needs and budget. However, it is crucial for franchisees to ensure that the CPA they choose is qualified and experienced in reviewing financial statements for businesses similar to Brueggers Bagels. This requirement helps protect both the franchisee and the franchisor by ensuring accurate and reliable financial reporting.