What information about the developer's ownership interests is disclosed in Exhibit C of the Brueggers Bagels Development Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT C TO BRUEGGER'S DEVELOPMENT AGREEMENT DISCLOSURE OF OWNERSHIP INTERESTS
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, Exhibit C to the Brueggers Bagels Development Agreement is titled "Disclosure of Ownership Interests." This exhibit likely requires the developer to disclose all individuals or entities holding legal or beneficial ownership interests in the development entity. This information is crucial for Brueggers Bagels to understand who is ultimately responsible for fulfilling the obligations outlined in the Development Agreement.
Brueggers Bagels also requires that individuals with ownership interests in the Developer to be personally bound by the Development Agreement. This includes obligations around non-competition, confidentiality, and dispute resolution. This ensures that the obligations extend beyond just the business entity and apply to the individuals who benefit from the agreement. If the developer is a business entity, all individuals with legal or beneficial ownership interests in that entity must also sign the agreement.
Furthermore, Brueggers Bagels mandates that owners, officers, and directors of the Developer must execute a Guaranty, binding them jointly and severally to the terms of the Development Agreement. They must also sign a Confidentiality and Non-competition Agreement. These requirements may also extend to the spouses of guarantors residing in community property states and to any manager who receives training from Brueggers Bagels. Any arrangements that could affect the control of the developer, such as voting trusts or management agreements, require the prior written consent of Brueggers Bagels.