If a business entity signs the Brueggers Bagels Confidentiality and Non-Competition Agreement, what is required of the persons who have a legal or beneficial ownership interest in that business entity?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, if a business entity signs the Confidentiality and Non-Competition Agreement, all individuals holding a legal or beneficial ownership interest in that entity must also execute the same agreement. Additionally, if any of the owners reside in a community property state, Brueggers Bagels may require their spouse to also sign the Confidentiality and Non-Competition Agreement.

This requirement ensures that all individuals with a stake in the Brueggers Bagels franchise are bound by the confidentiality and non-competition terms, preventing potential conflicts of interest or misuse of confidential information. By having all owners sign the agreement, Brueggers Bagels aims to protect its trade secrets, operational methods, and market strategies.

For a prospective franchisee, this means that if you plan to operate your Brueggers Bagels franchise through a corporation, LLC, or other business entity, all owners must be willing to sign the Confidentiality and Non-Competition Agreement. This is a standard practice in franchising to maintain brand consistency and protect the franchisor's interests. Franchisees should carefully review the terms of the agreement to understand their obligations and restrictions, especially regarding competition and confidentiality, both during the franchise term and after its expiration or termination.