Can a Brueggers Bagels franchisee terminate the Development Agreement for any reason?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| d. Termination by | Not applicable | Not applicable. You may terminate under |
| you | any grounds permitted by law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a franchisee has the ability to terminate the Development Agreement under any grounds permitted by law. This is in contrast to the Franchise Agreement, where the FDD indicates termination by the franchisee is 'Not applicable'.
This provision in the Development Agreement provides significant flexibility for the franchisee. It means that if circumstances change or the franchisee decides the development project is no longer viable, they can terminate the agreement without necessarily being in breach of contract, provided the termination is legally permissible. This could be due to external factors, market changes, or internal business decisions.
However, it is important to note that while the franchisee can terminate under any legally permitted grounds, this does not negate other obligations within the Development Agreement. For instance, non-competition covenants still apply, restricting involvement with competing businesses for one year within the Development Area or within 5 miles of any Brueggers Bagels location. Furthermore, any modifications to the agreement must be agreed upon in writing, and the agreement is subject to state law, specifically that of Colorado, where Brueggers Bagels has its principal place of business.