What is the length of the franchise term for a Brueggers Bagels bakery under the Franchise Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or License Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 3.1 of the Franchise Agreement; Section 2.1 of the License Agreement; Paragraph 2 of Franchise Agreement Addendum | The term under the Franchise Agreement is the earlier of 10 years from the date the Bakery opens, or 11 years from the effective date of the agreement; the term under the License Agreement is five years from the effective date of the agreement, and 10 years for all airport locations. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the franchise term length is determined by Section 3.1 of the Franchise Agreement. The term is either 10 years from when the bakery opens or 11 years from the agreement's effective date, whichever comes first. For a License Agreement, the term is five years from the effective date of the agreement, except for airport locations, which have a 10-year term.
This means a Brueggers Bagels franchisee can expect their initial franchise term to last for a decade, starting when their bakery commences operations, or potentially 11 years from the date the agreement takes effect. The shorter of these two periods will dictate the actual term length. License agreements, which may apply to smaller or non-traditional locations, generally have a shorter term of five years, with an exception for airport locations that match the standard franchise term of 10 years.
It is important for prospective franchisees to understand the implications of these term lengths. The initial investment and the time required to establish a profitable business should be carefully considered in relation to the franchise term. Franchisees should also be aware of the conditions for renewal, as outlined in Section 3.2 of the Franchise Agreement, which include being in good standing, signing a successor agreement, remodeling the bakery, signing a general release, and paying one-half of the then-current franchise fee. The terms of the Successor Franchise Agreement may also differ materially from the original agreement.