What is the geographic restriction on operating a competing business after the expiration or termination of a Brueggers Bagels Franchise Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of one (1) year after the expiration or termination of the Franchise Agreement or the approved transfer of the Bakery to a new owner, you will not directly or indirectly own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in any Competing Business which is, or is intended to be, located within ten (10) miles of the Premises or within five (5) miles of any other Bruegger's Bakery, except for any business operated pursuant to a valid franchise agreement or license agreement with us or one of our affiliates, or as we otherwise approve in writing. If you fail or refuse to abide by any of the foregoing restrictions and BFC obtains enforcement in a judicial or arbitration proceeding, the obligations under the breached restriction will continue in effect for one (1) year after the date you begin to comply with the order enforcing the restriction.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, for one year after the expiration or termination of the Franchise Agreement, or the approved transfer of the bakery to a new owner, a franchisee is restricted from involvement in a competing business. This restriction includes owning, maintaining, operating, being employed by, providing assistance to, or having any interest in a competing business.
The geographic scope of this restriction extends to any competing business located within ten miles of the former Brueggers Bagels premises or within five miles of any other Brueggers Bagels restaurant. However, this restriction does not apply to businesses operated under a valid franchise or license agreement with Brueggers Bagels or its affiliates, or if Brueggers Bagels provides written approval.
It's important to note that if a franchisee fails to comply with these restrictions and Brueggers Bagels pursues enforcement through legal proceedings, the restriction period will be extended. In such cases, the obligations under the breached restriction will remain in effect for one year after the franchisee begins to comply with the court or arbitrator's order enforcing the restriction. This extended period ensures that Brueggers Bagels is protected from unfair competition even if a franchisee initially violates the non-compete agreement.