What happens if a Brueggers Bagels franchisee or officer is convicted of a felony?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2.4. If you or any owner or principal officer of Franchisee is convicted of or pleads guilty or no contest to a felony or other crime or offense that we believe is reasonably likely to have an adverse effect on the Bakery, the System, the Proprietary Marks, the goodwill associated therewith, or our interest therein.
Once an individual has been arrested for or formally charged with a serious criminal offense, we will have the right: (i) to require that the individual be suspended from any active role in the franchised business pending final disposition of the charges; and (ii) if the person(s) charged include the Operating Partner, to take over operation of the Bakery and to manage the Bakery pending final disposition of the charges.
If we exercise the right in clause (ii), we may charge a reasonable management fee for our services;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, if a franchisee or any owner or principal officer of the franchisee is convicted of, or pleads guilty or no contest to, a felony or other crime or offense that Brueggers Bagels believes is reasonably likely to negatively impact the Bakery, the System, the Proprietary Marks, the associated goodwill, or Brueggers Bagels' interest, it can trigger certain actions.
Specifically, once an individual has been arrested for or formally charged with a serious criminal offense, Brueggers Bagels has the right to require that the individual be suspended from any active role in the franchised business pending the final resolution of the charges. Furthermore, if the person charged includes the Operating Partner, Brueggers Bagels can take over the operation of the Bakery and manage it until the charges are resolved. If Brueggers Bagels exercises this right to take over operations, they may charge a reasonable management fee for their services.
This clause protects Brueggers Bagels' brand and reputation by allowing them to distance themselves from individuals involved in serious criminal activity. For a prospective franchisee, this means that their own criminal record, or that of their owners or principal officers, could impact their ability to open or continue operating a Brueggers Bagels franchise. The franchisee could lose day-to-day control, and incur management fees, even before a conviction if someone is merely charged with a serious crime.