What happens if a receiver is appointed for a Brueggers Bagels franchisee's business or assets?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or any Owner dies, becomes incapacitated, or enters bankruptcy proceedings, that person's executor, administrator, personal representative, or trustee must apply to us in writing within 3 months after the event (death, declaration of incapacity, or filing of a bankruptcy petition) for consent to transfer the person's interest.
The transfer will be subject to the provisions of this Section 8, as applicable.
In addition, if the deceased or incapacitated person is the Operating Partner, we will have the right (but no obligation) to take over operation of the Bakery upon giving notice to the executor, administrator, personal representative, or trustee and to manage the Bakery until the transfer is completed.
If we exercise this right, we can charge a reasonable management fee for our services.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
I am unable to provide information on what happens if a receiver is appointed for a Brueggers Bagels franchisee's business or assets, according to the 2025 Franchise Disclosure Document. The document does outline the procedure in the event of death, incapacitation, or bankruptcy of the franchisee or an owner. In such cases, the executor, administrator, personal representative, or trustee must apply in writing to Brueggers Bagels for consent to transfer the person's interest within 3 months of the event. The transfer is subject to the standard transfer provisions. If the deceased or incapacitated person is the Operating Partner, Brueggers Bagels has the right, but not the obligation, to take over operation of the Bakery and manage it until the transfer is completed, charging a reasonable management fee for their services.
To fully understand the implications of receivership, prospective Brueggers Bagels franchisees should ask the franchisor for specific details. This would include clarifying Brueggers Bagels's rights and obligations, any potential fees or costs involved, and the process for ensuring a smooth transition of ownership or management in such circumstances. Understanding these details is crucial for making an informed decision about investing in a Brueggers Bagels franchise.
Understanding the full range of possible scenarios and their implications is a critical part of due diligence when considering a franchise investment.