When must the initial license fee be paid to Brueggers Bagels when entering into a License Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement in Exhibit A to this disclosure document.
Non-traditional locations. If you enter into a License Agreement with us, you must pay us a nonrefundable initial license fee of $12,500. You must pay the initial license fee in full when you sign the License Agreement. The initial license fee is uniform for all new licensees receiving this offering.
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The Development Fee, Initial Franchise Fee, and License Fee are fully earned upon receipt and are nonrefundable, even if you do not open the Bakery to which the fee applies, if you do not satisfactorily complete the requisite training, if contingencies in your lease are not satisfied, if you later close the Bakery, or if the Franchise Agreement, License Agreement, or Development Agreement is terminated for any reason.
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, if you enter into a License Agreement for a non-traditional location, you must pay the initial license fee in full when you sign the License Agreement. The initial license fee for a non-traditional location is $12,500, and this fee is nonrefundable. This fee is uniform for all new licensees.
This means that a prospective Brueggers Bagels licensee for a non-traditional location must have $12,500 available at the time of signing the License Agreement. This fee grants the licensee the right to operate a Brueggers Bagels outlet in a non-traditional facility, such as an airport or university.
It is important to note that this fee is separate from any other fees that may be required to open and operate the Licensed Bakery, such as costs related to build-out, equipment, and initial inventory. The License Fee is fully earned by Brueggers Bagels upon receipt and is nonrefundable, even if the licensee does not open the Bakery, fails to complete training, or if the License Agreement is terminated.