What happens if a Brueggers Bagels franchisee forfeits the right to do business in the jurisdiction?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2.3. If you cease to operate or otherwise abandon the Bakery for two (2) consecutive business days during which you are otherwise required to be open, without our prior written consent to do so, or if you lose the right to possession of the Premises, or forfeit the right to do or transact business in the jurisdiction where the Premises are located.
However, if, through no fault of your own, the Premises are damaged or destroyed by an event such that repairs or reconstruction cannot be completed within sixty (60) days thereafter, then you will have thirty (30) days after that event in which to apply for our approval to relocate and/or reconstruct the Bakery, which approval will not be unreasonably withheld;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, if a franchisee forfeits the right to do or transact business in the jurisdiction where their premises are located, it constitutes grounds for termination of the franchise agreement. This is listed as one of several conditions that can lead to the termination of the agreement.
Specifically, the FDD states that Brueggers Bagels can terminate the agreement if the franchisee loses the right to possession of the premises or forfeits the right to do business in the jurisdiction where the premises are located. However, an exception is made if the premises are damaged or destroyed through no fault of the franchisee, making repairs or reconstruction impossible within 60 days. In such cases, the franchisee has 30 days to apply for approval to relocate or reconstruct the bakery, which approval will not be unreasonably withheld by Brueggers Bagels.
This clause protects Brueggers Bagels by ensuring that franchisees maintain their legal right to operate in their location. For a prospective franchisee, this highlights the importance of understanding local regulations and maintaining compliance to avoid jeopardizing their franchise agreement. It also provides a limited recourse in cases of unforeseen disasters that render the original location unusable.