Where must litigation against Brueggers Bagels be filed, subject to state law?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, any litigation against the company must be filed in the jurisdiction where Brueggers Bagels has its principal place of business, but this is subject to applicable state laws. As of the date of the 2025 Franchise Disclosure Document, Brueggers Bagels' principal place of business is located in Denver, Colorado. This clause applies to both the Franchise Agreement and the License Agreement.

This means that if a franchisee has a legal dispute with Brueggers Bagels, they will likely need to pursue the matter in the courts of Denver, Colorado, regardless of where the franchisee's bakery is located. This could involve significant travel and legal expenses for a franchisee who is not located near Denver. It is important to note the clause is 'subject to state law', so depending on the franchisee's state, there may be some overriding protections.

Choice of forum clauses are common in franchise agreements, as they provide the franchisor with a consistent and predictable legal environment. However, franchisees should carefully consider the implications of such clauses, as they can add to the cost and complexity of resolving disputes. Prospective franchisees should consult with an attorney to understand their rights and obligations under the franchise agreement, including the choice of forum provision.