If a Brueggers Bagels franchisee's premises are damaged, can Brueggers Bagels unreasonably withhold approval for relocation?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
However, if, through no fault of your own, the Premises are damaged or destroyed by an event such that repairs or reconstruction cannot be completed within sixty (60) days thereafter, then you will have thirty (30) days after that event in which to apply for our approval to relocate and/or reconstruct the Bakery, which approval will not be unreasonably withheld;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, if a franchisee's premises are damaged or destroyed through no fault of their own, and repairs or reconstruction cannot be completed within 60 days, the franchisee has 30 days to apply for Brueggers Bagels's approval to relocate or reconstruct the bakery. Brueggers Bagels's approval for relocation or reconstruction will not be unreasonably withheld.
This provision protects the franchisee from being unfairly prevented from continuing their business operations if their original location becomes unusable due to unforeseen circumstances like a fire or natural disaster. The franchisee has a defined window of time (30 days) to apply for relocation approval, and Brueggers Bagels is obligated to act reasonably in considering the request.
It is important for prospective franchisees to understand the conditions under which they can relocate and what constitutes an unreasonable denial. Franchisees should seek clarification from Brueggers Bagels regarding the criteria and process for relocation approval to ensure they are prepared should such a situation arise. This clause provides a degree of security, but understanding the specifics is crucial for effective planning and risk management.