Who has the independent right to enforce the employee agreements for a Brueggers Bagels franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee owns and operates, or is developing, a BRUEGGER'S BAGELS restaurant pursuant to a License Agreement (the "License Agreement") with BRUEGGER'S FRANCHISE CORPORATION ("BFC").
The License Agreement requires persons with legal or beneficial ownership interests in Licensee to be personally bound by Licensee's obligations under the License Agreement, including restrictions on competition, confidentiality obligations, restrictions on ownership changes, and dispute resolution provisions.
BFC may enforce this Agreement directly against you.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 48)
What This Means (2025 FDD)
Based on the 2025 Brueggers Bagels Franchise Disclosure Document, if a franchisee (referred to as Licensee) owns and operates a Brueggers Bagels restaurant under a License Agreement with BRUEGGER'S FRANCHISE CORPORATION (BFC), the License Agreement mandates that individuals with legal or beneficial ownership interests in the Licensee are personally bound by the Licensee's obligations. These obligations encompass restrictions on competition, confidentiality obligations, restrictions on ownership changes, and dispute resolution provisions.
According to the FDD, BFC has the independent right to enforce the agreement directly against individuals who have a legal or beneficial ownership interest in the Licensee. This is a condition of acquiring and holding the ownership interest in the Licensee, and the execution of the agreement is considered good and valuable consideration.
This means that Brueggers Bagels can directly pursue legal action against individual owners of the franchise business for breaches of the License Agreement, rather than only against the business entity itself. This is common in franchising to ensure that key individuals are held accountable for upholding the franchise obligations. Prospective franchisees should carefully review the License Agreement and understand the full scope of their personal obligations and potential liabilities.