What information must a Brueggers Bagels franchisee provide when notifying Brueggers Bagels of an employee equity transfer?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us in writing of any proposed transfer at least thirty (30) days before the transfer is to take place, and must provide all information and documentation relating to the proposed transfer that we reasonably request.
- 16.3. Employee Ownership Plan.
If Franchisee is a business entity, your owner or owners may, without our prior written consent, sell, assign, transfer or give away to employees of Franchisee an aggregated amount of not more than twenty percent (20%) of Franchisee's outstanding equity, including the equity interest granted to the Operating Partner as required under Section 8.21 above provided: (i) we receive written notice of each transfer at least thirty (30) days before the transfer, which notice must identify the transferee, describe the transferee's position of employment, and include a calculation demonstrating that the planned transfer complies with this Section 16.3; and (ii) the transfer, when combined with all prior transfers of equity in Franchisee, does not result in a transfer of more than twenty percent (20%) of the outstanding equity or in a change of control of Franchisee.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels FDD, if a franchisee is a business entity and its owner(s) want to sell, assign, transfer, or give away equity to employees, they may do so without prior written consent from Brueggers Bagels, provided certain conditions are met. The total amount of equity transferred to employees cannot exceed 20% of the franchisee's outstanding equity, including any equity interest granted to the Operating Partner.
To notify Brueggers Bagels of an employee equity transfer, the franchisee must provide written notice at least 30 days before the transfer. This notice must include the identity of the employee receiving the equity (the transferee) and a description of their position of employment within the franchise. Additionally, the notice must include a calculation demonstrating that the planned transfer complies with the stipulations outlined in Section 16.3 of the franchise agreement.
This requirement ensures that Brueggers Bagels is informed about changes in ownership and can verify that the transfer does not violate the terms of the franchise agreement, particularly regarding the total equity transferred and control of the franchise. It is important for franchisees to adhere to these notification requirements to avoid potential breaches of contract and maintain a good relationship with Brueggers Bagels.