If the Brueggers Bagels Development Agreement is terminated due to my default, what sums will I owe?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1.6. Promptly pay all sums owing to us and our affiliates. In the event of termination for your default, the sums will include all damages, costs, and expenses incurred by us as a result of the default, including, but not limited to, reasonable attorneys' fees. You will have no right to a refund of all or any part of the Development Fee, regardless of whether you entered into a Franchise Agreement prior to such termination. We will retain all amounts paid to us pursuant to the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, if the Development Agreement is terminated due to your default, you must promptly pay all sums owing to Brueggers Bagels and its affiliates. These sums include all damages, costs, and expenses incurred by Brueggers Bagels as a result of the default, including, but not limited to, reasonable attorneys' fees.
Importantly, the FDD states that you will not be entitled to a refund of all or any part of the Development Fee, regardless of whether you entered into a Franchise Agreement prior to such termination. Brueggers Bagels will retain all amounts paid to them pursuant to the terms of the Development Agreement.
This means that a franchisee who defaults on the Development Agreement with Brueggers Bagels could face significant financial repercussions, including losing the initial development fee and being responsible for additional costs incurred by the franchisor due to the default. Prospective franchisees should carefully consider these potential costs and obligations before entering into a Development Agreement.