What is the initial franchise fee payable for each Brueggers Bagels Bakery to be developed?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ee as follows:
1. DEVELOPMENT RIGHTS AND OBLIGATIONS, FRANCHISE AGREEMENT AND INITIAL FRANCHISE FEE
- 1.1. We grant you the right, and you undertake the obligation, pursuant to the terms and conditions of this Agreement, to develop _____________ (___) Bakeries, solely within the territory defined in Exhibit A to this Agreement (the "Development Area"). The Bakeries will be located only at the specific locations we approve in writing pursuant to Section 4.1 below. The Bakeries will be developed in accordance with the schedule set forth in Exhibit B to this Agreement (the "Development Schedule"). Exhibit A, the Development Area and Exhibit B the Development Schedule are incorporated herein as if fully set forth in this Agreement.
- 1.2. To exercise your development rights, you must execute a separate Bruegger's Franchise Agreement ("Franchise Agreement") with us for each Bakery to be developed, in accordance with Section 4.1 bel
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the initial franchise fee for each bakery is $30,000. This fee is payable when the franchisee signs the Franchise Agreement for an approved site. The FDD specifies that all amounts collected are deemed fully earned upon receipt and are non-refundable.
Notably, if a franchisee has entered into a Development Agreement with Brueggers Bagels, a portion of the development fee may be applied to offset the initial franchise fee. Specifically, $10,000 of the development fee will be applied towards the initial franchise fee for each of the first three bakeries opened under the Development Agreement. For subsequent bakeries, $5,000 of the development fee will be applied to each, with the remaining balance of the $30,000 initial franchise fee due upon signing the Franchise Agreement.
This arrangement could significantly reduce the upfront costs for franchisees developing multiple Brueggers Bagels locations, as the development fee essentially pre-pays a portion of the initial franchise fees. However, it's important to note that the development fee is also non-refundable, so franchisees should carefully consider their development plans and capabilities before entering into a Development Agreement. Prospective franchisees should clarify with Brueggers Bagels the specific terms and conditions related to the Development Agreement and how the development fee is applied to the initial franchise fees.