What is the minimum notice a Brueggers Bagels franchisee must provide to the franchisor before a proposed transfer?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
usiness entity, on the business skill, financial capacity, and personal character of Franchisee's owners and management). Accordingly, except as provided in Section 16.3, neither you nor any immediate or remote successor to any interest in this Agreement, nor any individual, partnership, corporation, or other legal entity which directly or indirectly owns any interest in you, will sell, assign, transfer, convey, pledge, encumber or give away any direct or indirect interest in this Agreement, in you, or in substantially all of the assets of the Bakery, without our prior written consent as provided in Sections 16.5 and 16.7, which will not be unreasonably withheld. You must notify us in writing of any proposed transfer at least thirty (30) days before the transfer is to take place, and must provide all information and documentation relating to the proposed transfer that we reasonably request.
- 16.3. Employee Ownership Plan. If Franchisee is a business entity, your owner or owners may, without our prior written consent, sell, assign, transfer or give away to employees of Franchisee an aggregated amount of not more than twenty percent (20%) of Franchisee's outstanding equity, including the equity interest granted to the Operating Partner as required under Section 8.21 above provided: (i) we receive written notice of each transfer at least thirty (30) days before the transfer, which notice must identify the transferee, describe the transferee's position of employment, and include a calculation demonstrating that the planned transfer complies with this Section 16.3; and (ii) the transfer, when combined with all prior transfers of equity in Franchisee, does not result in a transfer of more than twenty percent (20%) of the outstanding equity or in a change of control of Franchisee.
- 16.4. Our Right of First Refusal.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, a franchisee must provide written notice to Brueggers Bagels at least thirty (30) days before any proposed transfer. This notification must include all information and documentation related to the proposed transfer that Brueggers Bagels reasonably requests. This requirement applies to transfers of the franchisee's rights to develop and operate a Bakery, even to an affiliated franchisee.
This advance notice allows Brueggers Bagels to assess the proposed transfer and ensure that the transferee meets their standards. It also gives Brueggers Bagels time to gather necessary information and documentation to make an informed decision about the transfer. The 30-day notice period is a fairly standard requirement in franchising, allowing the franchisor to protect its brand and ensure the continued success of the franchise system.
Additionally, if the franchisee is a business entity, they must provide Brueggers Bagels with written notice at least thirty (30) days before transferring equity to employees, even if the transfer is less than 20% of the outstanding equity. This notice must identify the transferee, describe their position of employment, and include a calculation demonstrating that the planned transfer complies with the relevant section of the agreement. This requirement ensures that Brueggers Bagels is aware of any changes in ownership, even minor ones, and can verify that the transfers do not violate the terms of the franchise agreement.