Is a Brueggers Bagels licensee required to acquire and install a point of sale (POS) system?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
shall have the right to disclose data from such records, reports and statements, if it considers disclosure advisable, consistent with this Agreement. Licensor reserves the right to require that Licensee's annual financial statements be audited, at Licensee's expense, by an independent certified public accountant approved by Licensor; provided, however, if the Facility requires independent audited financial statements from a different certified public accountant than that which Licensor requests, then Licensor will not unreasonably withhold consent to same. At Licensor's request, Licensee agrees to transmit any of the foregoing information to Licensor electronically or by any other means Licensor designates in accordance with such policies and procedures as it may establish from time to time as described below. In connection with any such electronic communications, Licensee agrees that (i) such electronic reports shall be deemed to be a "writing," and such reports shall be deemed for all purposes to have been signed and to constitute an original when printed from electronic files or records established and maintained by us in the normal course of business; and (ii) Licensee will not contest the validity, enforceability or admissibility of any such reports, if introduced as evidence on paper in any judicial or arbitration proceedings.
- 7.2. Information Systems. Licensee must acquire and install in the Bakery, at Licensee's expense, the point of sale (POS) system, back office computer, and other computer equipment, communications devices, audio/visual equipment, and software systems that Licensor specifies from time to time, unless Licensee or the Facility provides an equivalent technology suite. Licensee must maintain an electronic connection between its systems and Licensor's systems; must transmit data to Licensor at the times Licensor specifies; must give Licensor independent access to Licensee's systems and provide any user names and passwords necessary for that purpose; and must maintain Licensee's systems in good working order at all times. If Licensor introduces a new technology suite that applies to Licensed Bakeries generally, subject to any restrictions imposed by the Facility, Licensee must promptly install any new equipment, upgrades, additions, changes, modifications, substitutions and/or replacements of hardware, software, data connectivity, and electrical power as may be reasonably necessary to implement the new technology suite. Licensee shall maintain compliance with the current version of the Payment Card Industry Data Security Standard (PCI DSS) and any other similar standards under applicable law concerning the security of personally identifiable information. Licensee is solely responsible for the setup, installation, and maintenance of Licensee's computerized systems.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, licensees are required to acquire and install a point of sale (POS) system, along with back office computer and other computer equipment, communications devices, audio/visual equipment, and software systems. This is at the licensee's expense. However, this requirement is waived if the licensee or the facility provides an equivalent technology suite.
Brueggers Bagels also mandates that licensees maintain an electronic connection between their systems and the company's systems. This includes transmitting data at specified times and granting Brueggers Bagels independent access to the licensee's systems, including providing usernames and passwords. Licensees are responsible for keeping their systems in good working order at all times.
Furthermore, if Brueggers Bagels introduces a new technology suite that applies to all licensed bakeries, the licensee must promptly install any new equipment, upgrades, additions, changes, modifications, substitutions, or replacements of hardware, software, data connectivity, and electrical power necessary to implement the new technology suite, subject to any restrictions imposed by the facility. Licensees must also comply with the current version of the Payment Card Industry Data Security Standard (PCI DSS) and any other similar standards under applicable law concerning the security of personally identifiable information. The licensee is solely responsible for the setup, installation, and maintenance of their computerized systems.
Licensees must record all sales on computer-based point of sale systems approved by Brueggers Bagels or on other types of cash registers designated in the Manual or in writing. These POS Systems must be fully compatible with any program, software program, and/or system that Brueggers Bagels may employ, including mobile or remote device, application, and payment systems. All gross sales and sales information must be recorded on such equipment. Brueggers Bagels may designate third-party suppliers or servicers to provide installation, maintenance, and/or support for the POS System, and licensees must enter into and maintain agreements with these parties, including making required payments. A continuous high-speed cabled (not wireless) connection to the Internet is required to send and receive POS data to Brueggers Bagels.