factual

What happens if a Brueggers Bagels franchisee violates the standards prescribed in the manuals?

Brueggers_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

omply fully with our quality assurance program. The program may include, among other things, customer satisfaction surveys, mystery shopper reports, employee satisfaction and perception surveys, health and safety reviews, product and ingredient testing, and observation of food preparation areas and processes. You must pay any out-of-pocket costs incurred to third parties to carry out quality assurance program activities at your Bakery. If you fail to achieve the minimum score prescribed in the Manuals for a specific quality assurance category, we may require you and/or your employees to complete additional training at the Bakery or a location that we designate, at your expense. If you fail to

achieve the prescribed minimum score on two consecutive assessment occasions or on three or more assessment occasions in any five (5) year period, we will have the right to terminate this Agreement under Section 17.2.13.

  • 8.20. Compliance with Laws. You must operate the Bakery in full compliance with all applicable municipal, county, state and federal laws, rules, regulations and ordinances. You have sole responsibility for compliance despite any information or advice that we may provide.

Source: Item 22 — CONTRACTS (FDD page 61)

What This Means (2025 FDD)

According to Brueggers Bagels's 2025 Franchise Disclosure Document, failure to comply with the standards detailed in the manuals can lead to specific consequences. If a franchisee fails to achieve the minimum score in a quality assurance category, Brueggers Bagels may require the franchisee and their employees to complete additional training at the bakery or another designated location, at the franchisee's expense.

If the franchisee fails to meet the minimum score on two consecutive assessments or on three or more assessments within a five-year period, Brueggers Bagels has the right to terminate the Franchise Agreement. Furthermore, any significant failure to comply with mandatory system standards or to pass periodic quality control inspections constitutes a material breach of the agreement, potentially resulting in a re-audit fee, which is currently $1,500.

These standards, as acknowledged by the franchisee, may relate to any aspect of the bakery's appearance, function, cleanliness, and operation. The franchisee must also avoid deceptive, misleading, or unethical practices that could negatively impact the reputation and goodwill of Brueggers Bagels or any other franchisee operating under the system. Brueggers Bagels retains the right to modify these standards to accommodate the individual circumstances of different franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.