What must a Brueggers Bagels licensee do before transferring the agreement to an affiliated entity?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
16.5.1. That all of your accrued monetary obligations and all other outstanding obligations to us and our affiliates have been satisfied;
16.5.2. That you are not in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you and us or our affiliates;
16.5.3. That the transferor executes a general release, in a form satisfactory to us, of any and all claims against us, our guarantee the performance of all such obligations in writing in a form satisfactory to us;
8.5.5. If the transferee is an existing Bruegger's developer or franchisee, that the transferee is not in default under its agreements with us and has a good record of customer service and compliance with our operating standards;
8.5.6. That the transferee, whether or not an existing Bruegger's developer or franchisee, demonstrates to our satisfaction that he or she meets (or, if the transferee is a business entity, that its owners and management team meet) our educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the business contemplated hereunder (as may be evidenced by prior related business experience or otherwise); and has adequate financial resources and capital to fulfill your obligations hereunder in a timely manner; and
8.5.7. That the transferor pays a transfer fee of Five Thousand Dollars ($5,000)
8.5.8. That the transferee (if an entity, its Operating Partner) and any employees of the transferee who have not previously completed a training program approved by us complete any training programs then in effect for new franchisees, at their expense.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, a licensee seeking to transfer their agreement must meet several conditions. First, all accrued monetary obligations and any other outstanding debts to Brueggers Bagels and its affiliates must be satisfied. The licensee must also not be in default of any provision within the existing agreement, any amendments to it, or any other agreements they have with Brueggers Bagels or its affiliates.
Additionally, the transferring party is required to execute a general release, using a form that is satisfactory to Brueggers Bagels, which waives any and all claims against the company and its affiliates. The FDD states that the transferee must secure a written guarantee ensuring the performance of all obligations, presented in a format that Brueggers Bagels finds acceptable.
If the transferee is already a Brueggers Bagels developer or franchisee, they must not be in default under any existing agreements with the company and must have a proven track record of good customer service and adherence to Brueggers Bagels' operational standards. Whether the transferee is new or existing, they must demonstrate that they (or their owners and management team, if a business entity) meet Brueggers Bagels' standards for education, management, and business acumen. They should also possess good moral character, a solid business reputation, a favorable credit rating, and the aptitude and financial resources necessary to fulfill the obligations of the franchise agreement in a timely manner. Finally, the transferor is responsible for paying a transfer fee of $5,000. The transferee (or its Operating Partner, if an entity) and any of the transferee's employees who have not previously completed an approved training program must complete any training programs then in effect for new franchisees, at their own expense.