Can the Licensee hold Brueggers Bagels responsible for delays caused by third-party manufacturers of furniture, fixtures, and equipment?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that, although we will provide you with basic drawings and specifications for a BRUEGGER'S BAGELS restaurant, will specify certain furniture, fixtures and equipment, and will maintain certain rights of review and/or approval under our License Agreement with you, we have not made, and you have not received or relied upon any warranty concerning the BRUEGGER'S BAGELS restaurant(s) or the drawings, specifications, furniture, fixtures and equipment. You acknowledge that you are solely responsible for, and we will have no liability or obligation in connection with, the plans or the construction or conversion remodeling of the BRUEGGER'S BAGELS restaurant(s). You acknowledge that it is solely your responsibility to insure that the construction or conversion remodeling complies with any and all laws, codes or regulations.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the franchisee acknowledges that Brueggers Bagels has no liability or obligation regarding the furniture, fixtures, and equipment specified for the restaurant. The franchisee is solely responsible for ensuring the construction or remodeling complies with all applicable laws and regulations. This means that Brueggers Bagels franchisees bear the risk of delays from third-party manufacturers.
Brueggers Bagels specifies certain furniture, fixtures, and equipment for the restaurant but does not provide any warranties concerning them. The franchisee is expected to conduct an independent investigation of the business venture and acknowledges the associated business risks. This includes understanding that factors such as supply costs and the marketplace can impact the success of the franchise.
In practice, this means if a manufacturer delays the delivery of essential equipment, impacting the opening date or ongoing operations, the franchisee cannot hold Brueggers Bagels liable. The franchisee is responsible for managing these risks, potentially by securing contingency plans with suppliers or ensuring sufficient lead times. This is a common arrangement in franchising, where franchisees typically bear the responsibility for construction and supply chain-related issues.