Does the Brueggers Bagels franchisor assume liability for the actions of the franchisee?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
It is understood and agreed that nothing in this Agreement authorizes Franchisee to make any contract, agreement, warranty, or representation on Franchisor's behalf, or to incur any debt or other obligation in Franchisor's name, and that Franchisor shall in no event assume liability for or be deemed liable hereunder as a result of any such action or by reason of any act or omission of Franchisee in Franchisee's conduct in the operation of the Bakery or any claim or judgment arising there from against Franchisor.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the franchisor does not assume liability for the actions of the franchisee. The franchise agreement explicitly states that the franchisee is not authorized to make any agreements or incur any debt on behalf of Brueggers Bagels.
Furthermore, Brueggers Bagels "shall in no event assume liability for or be deemed liable hereunder as a result of any such action or by reason of any act or omission of Franchisee in Franchisee's conduct in the operation of the Bakery or any claim or judgment arising there from against Franchisor." This means that the franchisee is responsible for all aspects of their business operations and any liabilities that arise from those operations.
The franchisee also agrees to defend and indemnify Brueggers Bagels from any damages, losses, or expenses, including attorney's fees, resulting from the franchisee's actions or omissions. This includes violations of contracts, laws, or regulations, as well as any claims related to the operation of the Bakery. This is a common arrangement in franchising, intended to protect the franchisor from legal and financial repercussions due to the franchisee's business conduct.