What is the length of the franchise term for a Brueggers Bagels bakery under the License 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 term for a License Agreement is generally five years from the effective date of the agreement. However, there is an exception for airport locations, where the term is 10 years.
This means that if a franchisee operates a Brueggers Bagels bakery under a License Agreement in a typical location, the agreement will last for five years. After this initial term, the franchisee has the option to renew the agreement, as detailed elsewhere in the FDD. For franchisees operating in airport locations, the initial term is longer, providing a more extended period of operation under the original agreement.
Prospective franchisees should carefully consider the location of their intended bakery, as this will impact the length of the initial franchise term under the License Agreement. Understanding the term length is crucial for financial planning, investment recovery, and long-term business strategy. Franchisees should also inquire about the conditions and requirements for renewal to ensure they can continue operating their Brueggers Bagels bakery beyond the initial term.