What is the licensee's obligation to bid or develop additional Brueggers Bagels locations in the Facility to maintain the licensor's agreement not to develop another Bruegger's Bakery in the same Facility?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, a licensee must make commercially reasonable efforts to bid or develop additional Brueggers Bagels locations within the same facility to prevent the licensor from developing or granting rights to others to develop another Brueggers Bagels bakery in that facility. This obligation is contingent upon the licensee's compliance with the agreement in all material respects.

This clause ensures that if a licensee is capable of expanding within the facility, they should actively pursue those opportunities. This protects the licensee's exclusive right to operate a Brueggers Bagels within that facility. By requiring 'commercially reasonable efforts,' the agreement acknowledges that not all bids or development attempts will be successful, but the licensee must demonstrate a genuine effort to expand.

For a prospective Brueggers Bagels licensee, this means understanding the potential for expansion within the facility and being prepared to act on those opportunities. It's crucial to maintain compliance with all aspects of the licensing agreement to ensure the protection against additional competing Brueggers Bagels locations within the same facility. The licensee should document all efforts to bid or develop additional locations to demonstrate fulfillment of this obligation.