If a Brueggers Bagels franchisee is arrested for a serious criminal offense, can they be suspended from the business?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2.4. If you or any owner or principal officer of Franchisee is convicted of or pleads guilty or no contest to a felony or other crime or offense that we believe is reasonably likely to have an adverse effect on the Bakery, the System, the Proprietary Marks, the goodwill associated therewith, or our interest therein.
Once an individual has been arrested for or formally charged with a serious criminal offense, we will have the right: (i) to require that the individual be suspended from any active role in the franchised business pending final disposition of the charges; and (ii) if the person(s) charged include the Operating Partner, to take over operation of the Bakery and to manage the Bakery pending final disposition of the charges.
If we exercise the right in clause (ii), we may charge a reasonable management fee for our services;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, if a franchisee or any owner or principal officer is arrested for a serious criminal offense, Brueggers Bagels has specific rights regarding the operation of the franchise.
Specifically, once an individual has been arrested for or formally charged with a serious criminal offense, Brueggers Bagels has the right to require that the individual be suspended from any active role in the franchised business pending the final resolution of the charges. Furthermore, if the person charged includes the Operating Partner, Brueggers Bagels can take over the bakery's operation and manage it until the charges are resolved.
If Brueggers Bagels exercises its right to take over operations, they may charge a reasonable management fee for their services. This provision protects Brueggers Bagels's interests and brand reputation while ensuring the bakery continues to operate even if the franchisee faces legal issues.