What is the initial license fee required to be paid to the licensor for a Brueggers Bagels franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ion of a Bakery within the Facility, upon the terms and subject to the provisions of this Agreement. As long as Licensee fully complies with the terms of this Agreement, Licensee shall have the sole right to operate and manage a Bakery in the Facility during the Term (as defined below).
- 1.2. Reserved Rights. Licensor has and reserves all other rights not expressly granted to Licensee herein including the right, in its sole discretion, to develop and operate and grant any other person or entity the right to develop and operate Bakeries at any location, wherever located. In addition, Licensor has the right, in its sole discretion, to offer and sell, and license and/or franchise others to offer and sell, any products or services under marks other than the Marks at any location wherever located, including within or outside of the Facility. Notwithstanding the foregoing, provided that Licensee is in compliance with this Agreement in all material respects and makes commercially reasonable efforts to bid or develop additional Bruegger's locations in the Facility, then Licensor agrees that during the Term, it will not develop and operate or grant any other person or entity the right to develop and operate a Bruegger's Bakery in the same Facility of the ______________.
1.3. Fees.
- (a) Initial License Fee. In consideration of the license granted herein and concurrently with the execution of this Agreement, Licensee shall pay to Licensor a license fee of Twelve Thousand Five Hundred Dollars ($12,500) (the "License Fee").
- (b) "Gross Sales" Defined. "Gross Sales" means the amount received by Licensee for all sales of any food, beverages, or other products sold by Licensee or any other person or entity in, or from the Bakery for cash, credit or otherwise, including but not limited to sales and services where the order originated in, at or from the Bakery regardless of where delivery or performance is made, minus (i) non-branded, non-proprietary merchandise (e.g., newspapers); (ii) refunds to customers that were previously included in Gross Sales, (iii) c
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the initial license fee is $12,500. This fee is paid by the licensee to the licensor in consideration of the license granted. Payment is due concurrently with the execution of the License Agreement.
This initial license fee grants the franchisee the right to operate a Brueggers Bagels bakery under the terms of the franchise agreement. It is a one-time fee paid upfront and is separate from ongoing royalty fees or other charges. The franchisee must pay this fee to gain access to the Brueggers Bagels brand, system, and support.
In addition to the initial license fee, Brueggers Bagels franchisees are also required to pay a royalty fee. This is a continuing fee, calculated as 5% of gross sales, and is paid weekly. Gross sales include all revenue from food, beverages, and other products sold at the bakery, with certain deductions for items like refunds, approved discounts, and sales taxes.