For how long after the expiration or termination of the Brueggers Bagels License Agreement is an owner restricted from engaging in a Competing Business?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of one (1) year after the expiration or termination of the License Agreement or the approved transfer of the Bakery to a new owner, you will not directly or indirectly own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in any Competing Business which is, or is intended to be, located within ten (10) miles of the Premises or within five (5) miles of any other BRUEGGER'S BAGELS restaurant, except for any business operated pursuant to a valid License Agreement with us or as we otherwise approve in writing.
If you fail or refuse to abide by any of the foregoing restrictions and BFC obtains enforcement in a judicial or arbitration proceeding, the obligations under the breached restriction will continue in effect for one (1) year after the date you begin to comply with the order enforcing the restriction.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, a franchisee is restricted from engaging in a Competing Business for one year after the expiration or termination of the License Agreement, or after the approved transfer of the bakery to a new owner. This restriction applies to directly or indirectly owning, maintaining, operating, being employed by, providing assistance to, or having any interest in a Competing Business.
The geographic scope of this restriction is limited to businesses located within ten miles of the Brueggers Bagels premises or within five miles of any other Brueggers Bagels restaurant. However, this restriction does not apply to any business operated under a valid franchise or license agreement with Brueggers Bagels, or if Brueggers Bagels provides written approval.
Furthermore, if a franchisee fails to comply with these restrictions and Brueggers Bagels pursues legal action to enforce them, the restriction period will be extended. In such cases, the one-year restriction will continue to be in effect for one year after the franchisee begins to comply with the court order enforcing the original restriction. This clause ensures that Brueggers Bagels can protect its market and brand integrity even if a franchisee initially defies the non-compete agreement.