What is the minimum notice period required before a Brueggers Bagels franchisee can propose a transfer of interest?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a franchisee must provide written notice at least thirty (30) days before any proposed transfer of interest. This notification must include all information and documentation related to the proposed transfer that Brueggers Bagels reasonably requests.
This requirement ensures that Brueggers Bagels has adequate time to evaluate the proposed transfer and the potential transferee. It allows them to assess whether the transferee meets their standards for financial stability, operational experience, and overall suitability as a franchisee. The information requested by Brueggers Bagels might include the transferee's financial statements, business plan, and relevant experience in the food service industry.
Additionally, if the franchisee is a business entity, the owner may sell or transfer up to 20% of the outstanding equity to employees without prior written consent, provided that Brueggers Bagels receives written notice at least thirty (30) days before the transfer. This notice must identify the transferee, describe their position of employment, and include a calculation demonstrating compliance with the relevant section of the agreement. This provision allows for some flexibility in employee ownership while still ensuring Brueggers Bagels is informed of significant changes in ownership structure.