What happens if a transfer of ownership results in a change of control of the Brueggers Bagels licensee?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
20.5. Control Arrangements. Any voting trust, management agreement, or other arrangement affecting the power to direct and control your affairs requires our prior written consent. You must furnish such information and documentation as we may request concerning any proposed control arrangement.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, any arrangement that affects the power to direct and control the franchisee's affairs, such as a voting trust or management agreement, requires the prior written consent of Brueggers Bagels. The franchisee must provide any information and documentation requested by Brueggers Bagels concerning any proposed control arrangement.
This means that if a franchisee plans to enter into any agreement that could shift control of their Brueggers Bagels franchise to another party, they must first obtain approval from Brueggers Bagels. This provision allows Brueggers Bagels to maintain oversight and ensure that any changes in control align with their brand standards and operational procedures.
For a prospective Brueggers Bagels franchisee, this implies that they cannot freely transfer control of their franchise without the franchisor's consent. It is essential to disclose any potential control arrangements to Brueggers Bagels and provide all necessary documentation for review. Failure to obtain prior written consent could result in a breach of the franchise agreement and potential termination.