factual

Can the Brueggers Bagels franchisor further assign the lease to any affiliate?

Brueggers_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

Landlord agrees that Franchisor may further assign the Lease to any affiliate of Franchisor or any franchisor, franchisee or developer of a bakery café operating under the Tradename.

Source: Item 22 — CONTRACTS (FDD page 61)

What This Means (2025 FDD)

According to the 2025 Brueggers Bagels Franchise Disclosure Document, the landlord agrees that Brueggers Bagels may further assign the lease to any affiliate of Brueggers Bagels, or any franchisor, franchisee, or developer of a bakery café operating under the Tradename. This clause provides Brueggers Bagels with flexibility in managing the lease and premises.

This is a standard practice in franchising, as it allows the franchisor to maintain control over the location and ensure continuity of the business. It also protects the landlord by ensuring that the lease is assigned to a party that is capable of fulfilling the obligations under the lease. For a prospective franchisee, this means that the franchisor has the right to transfer the lease to another party, which could impact the franchisee's business operations.

However, it is important to note that the original tenant remains liable for the payment and performance of all duties, liabilities, obligations, and responsibilities following such assignment, unless specifically released from these obligations. This clause ensures that the landlord is protected in case the new tenant defaults on the lease. The terms and conditions set forth in the agreement will remain in effect even after any assignment or sublease.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.