What happens if a Brueggers Bagels franchisee defaults on their franchise agreement, leading to termination?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, upon termination or expiration of the Franchise Agreement, a franchisee must cease operating the Bakery and discontinue using any confidential methods, procedures, and techniques associated with the Brueggers Bagels system. This includes the Bruegger's and Bruegger's Bagels names and marks, all other Proprietary Marks, the Works, and all other distinctive forms, slogans, signs, symbols, websites, domain names, email addresses, other electronic identifiers, and devices associated with the Bakery or the System. The franchisee must also withdraw all advertising matter, including electronic marketing, and remove all signs, letterheads, and other articles displaying the Proprietary Marks from the premises.
Additionally, the franchisee cannot directly or indirectly represent themselves to the public as a present or former Brueggers Bagels franchisee, except as provided in Section 18.2 of the agreement. The franchisee is obligated to deliver to Brueggers Bagels the Manuals and all other records, correspondence, and instructions in their 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, acknowledging that all such materials are the property of Brueggers Bagels.
Furthermore, the franchisee must take necessary actions to cancel any assumed name registration or equivalent registration, as well as any email address or domain name registration, obtained by them that contains "Bruegger's" or any other Proprietary Marks. Evidence of compliance with this obligation must be furnished to Brueggers Bagels within five days after the termination or expiration of the Franchise Agreement. If the franchisee fails to do so within this period, they appoint Brueggers Bagels as their attorney-in-fact to carry out these requirements. The franchisee is also prohibited from using any reproduction, counterfeit, copy, or colorable imitation of the Proprietary Marks or the Works in connection with any other business that could cause confusion, mistake, or deception, or dilute the rights of Brueggers Bagels and its affiliates in the Proprietary Marks and the Works.