How is the Brueggers Bagels marketing contribution allocated?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| This amount | Into this fund: |
|---|---|
| Fifty percent (50%) of the Marketing Contribution (that | Systemwide |
| is, 1.75% of your Gross Sales) | Marketing Fund |
| Fifty percent (50%) of the Marketing Contribution (that | LSM |
| is, 1.75% of your Gross Sales) |
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees must contribute 3.5% of their weekly gross sales as a marketing contribution. Currently, this contribution is split evenly, with 50% going to the Systemwide Marketing Fund (SMF) and 50% allocated to Local Store Marketing (LSM). This means that 1.75% of gross sales is directed to each of these funds.
The Systemwide Marketing Fund can be used at Brueggers Bagels's discretion to cover various costs, including advertising materials, promotional items, website maintenance, social media, endorsement contracts, employee salaries related to marketing, professional fees, administrative costs, and other promotional activities. While Brueggers Bagels will seek advice from franchisees regarding the creative concepts and media used for programs financed by the SMF, they retain the final authority on all programs. Franchisees acknowledge that the SMF aims to maximize general public recognition of Brueggers Bagels outlets, and the franchisor is not obligated to ensure that expenditures benefit each franchisee proportionally to their contribution.
Brueggers Bagels has the right to change the allocation of the marketing contribution among the Systemwide Marketing Fund, Local Store Marketing, and any Marketing Co-op, provided they give written notice to the franchisee. They also reserve the right to collect and hold LSM funds, seeking franchisee guidance on how these funds should be spent. However, if a franchisee does not provide timely guidance, Brueggers Bagels can direct the expenditure of LSM funds. No portion of the marketing contribution is subject to refund or repayment under any circumstances.
Prospective Brueggers Bagels franchisees should understand that while they contribute to marketing efforts, the franchisor has significant control over how these funds are spent. Franchisees are required to participate in joint marketing programs and may be required to join local or regional marketing cooperatives if established. It is important for franchisees to stay informed about changes to the marketing contribution allocation and to provide timely input on the use of LSM funds to ensure their local market needs are addressed.