What happens if a Brueggers Bagels franchisee loses the right to possession of the premises?
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 Brueggers Bagels' 2025 Franchise Disclosure Document, the loss of premises can trigger specific actions and potential termination. Specifically, if a franchisee loses the right to possess their Brueggers Bagels location, it constitutes grounds for termination of the Franchise Agreement. However, if the loss of the premises is due to damage or destruction beyond the franchisee's control, and repairs or reconstruction cannot be completed within 60 days, the franchisee has 30 days to apply for approval to relocate or reconstruct the bakery. Brueggers Bagels' approval for relocation or reconstruction will not be unreasonably withheld.
If the lease is terminated, Brueggers Bagels has the right to enter the premises and make necessary modifications to protect or remove their System or Proprietary Marks. This must be done within 30 days of receiving a written request from the landlord. After this 30-day period, it is assumed that no further modifications are needed, and Brueggers Bagels loses the right to enter the premises or modify it further. The landlord can then use or dispose of any remaining fixtures and personal property without any claim from Brueggers Bagels regarding infringement of their System or Proprietary Marks.
Following any modifications made by Brueggers Bagels, the franchisee is responsible for repairing any damage caused to the premises during these modifications and must leave the premises in good repair and condition. This ensures that the property is returned to a suitable state after Brueggers Bagels has taken steps to protect its interests. These stipulations protect Brueggers Bagels' brand and operational methods while also providing a process for franchisees to potentially relocate or rebuild in cases of property damage beyond their control.