If Brueggers Bagels modifies or substitutes trademarks, who bears the expense of compliance?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (a) Subject to the approval of the Lessor, Licensee shall affix to the Bakery, at such places as may permissibly be affixed in accordance with Licensee's Management Agreement and/or Lease for the Facility, signs containing the Marks in the size, color and quality of that prescribed by Licensor and approved by the Lessor. Licensee shall not display signs containing any of the Marks at any place to which Licensor reasonably objects.
- (b) Licensee shall accept, use and display, as may be applicable, such Marks in accordance with the Standards, which may be determined by Licensor from time to time.
- (c) Licensee shall ensure that the Marks
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the franchisee, referred to as the Licensee, is generally responsible for the expenses associated with complying with any modifications or substitutions of trademarks. This includes using and displaying any additional or substitute trademarks directed by Brueggers Bagels. However, there is a limit to this expense.
The document specifies that the franchisee will not be required to spend more than $5,000 in any 12-month period during the term of the agreement to comply with these trademark changes. This provision offers some financial protection to the franchisee, capping their expenditure on trademark-related changes within a given year.
This arrangement is fairly typical in franchising, where the franchisor maintains control over the brand's image and trademarks, but franchisees bear some of the costs of implementing changes. The $5,000 limit provides a degree of predictability and affordability for the franchisee, preventing potentially unlimited expenses related to rebranding or trademark updates.