What is the Brueggers Bagels franchisee required to do to protect the franchisor's reputation and goodwill?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
18. OBLIGATIONS UPON TERMINATION OR EXPIRATION
- 18.1. De-Identification. Except as provided in Section 18.2 below, upon termination or expiration of this Agreement, you must:
- 18.1.1. Cease to operate the Bakery;
- 18.1.2. Cease to use the confidential methods, procedures, and techniques associated with the System, the "Bruegger's" and "Bruegger's Bagels" names and marks, all other Proprietary Marks, the Works, and all other distinctive forms, slogans, signs, symbols, Web sites, domain names, e-mail addresses, other electronic identifiers, and devices associated with the Bakery or the System; withdraw all advertising matter (including electronic marketing); remove from the Premises all signs, letterhead, and other articles which display the Proprietary Marks; and except as provided in Section 18.2 below not thereafter, directly or indirectly, represent yourself to the public or hold yourself out as a present or former franchisee of ours;
- 18.1.3. Deliver to us the Manuals and all other records, correspondence, and instructions in your possession or control, in any medium, that contain confidential information, trade secrets, or know-how relating to the System or the operation of a Bakery, all of which you acknowledge to be our property;
- 18.1.4. Take such action as may be necessary to cancel any assumed name registration or equivalent registration, and any e-mail address or domain name registration,
obtained by you which contains "Bruegger's" or any other Proprietary Marks, and furnish evidence satisfactory to us of compliance with this obligation within five (5) days after termination or expiration of this Agreement. You hereby appoint us your attorney-in-fact to carry out the requirements of this Section 18.1.4, if you fail to do so within such five (5) day period;
- 18.1.5. Not use any reproduction, counterfeit, copy, or colorable imitation of the Proprietary Marks or the Works in connection with any other business which, in our sole discretion, is likely to cause confusion, mistake, or deception or to dilute our and our affiliates' rights in and to the Proprietary Marks and the Works.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees have several obligations to protect the franchisor's reputation and goodwill, particularly upon termination or expiration of the franchise agreement. These obligations primarily revolve around ceasing operations and de-identifying the business to ensure no confusion arises among customers.
Specifically, a franchisee must cease operating the Brueggers Bagels bakery, discontinue using any confidential methods, procedures, and techniques associated with the Brueggers Bagels system, and stop using the "Bruegger's" and "Bruegger's Bagels" names and marks, as well as any other proprietary marks. This includes withdrawing all advertising material, including electronic marketing, and removing all signs, letterheads, and other articles displaying the proprietary marks from the premises. Furthermore, franchisees cannot represent themselves as a current or former franchisee of Brueggers Bagels.
Additionally, franchisees must return all manuals, records, correspondence, and instructions containing confidential information, trade secrets, or know-how related to the Brueggers Bagels system. They must also take necessary actions to cancel any assumed name registrations, email addresses, or domain name registrations containing "Bruegger's" or any other proprietary marks, providing evidence of compliance within five days of termination or expiration. Franchisees are prohibited from using any reproduction, counterfeit, copy, or imitation of the proprietary marks in connection with any other business that could cause confusion or dilute Brueggers Bagels' rights to its marks.