What is the initial franchise fee for a Brueggers Bagels franchise, and when is it due?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (Note 2) | $35,000 | Lump sum | Upon signing the Franchise Agreement | Us |
- (2) These amounts are discussed in detail in Item 5.
The initial franchise fee must be paid when the Franchise Agreement is signed.
Please see the information provided above in Item 5 regarding the Development Agreement.
If you have also signed a Development Agreement, and you are in compliance with your obligations under the Development Agreement and all of your Franchise Agreements, then we will apply a credit from your development fee toward the initial franchise fee.
The amount of the credit will be $10,000 for each Bakery you agree to develop.
Unless otherwise agreed, the minimum number of Bakeries you will be required to develop is two.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the initial franchise fee is $35,000. This fee is payable in a lump sum when the Franchise Agreement is signed.
If a prospective franchisee also signs a Development Agreement and complies with its obligations, they may receive a credit towards the initial franchise fee. This credit is $10,000 for each Brueggers Bagels bakery the franchisee agrees to develop, with a minimum requirement to develop two bakeries unless otherwise agreed upon. This credit is applied from the development fee.
It is important to note that the initial franchise fee is generally non-refundable. This is a common practice in the franchise industry, as the fee covers the franchisor's initial costs in evaluating and setting up the new franchise location. Prospective franchisees should carefully consider their financial situation and the terms of the Franchise Agreement before signing and paying the initial fee.