How much notice does Brueggers Bagels require if a change of control occurs?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee owns and operates, or is developing, a Bruegger's restaurant pursuant to a Franchise Agreement (the "Franchise Agreement") with Bruegger's Franchise Corporation ("BFC").
The Franchise Agreement requires persons with legal or beneficial ownership interests in Franchisee to be personally bound by Franchisee's obligations under the Franchise Agreement, including restrictions on competition, confidentiality obligations, restrictions on ownership changes, and dispute resolution provisions.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the information about the specific amount of notice Brueggers Bagels requires in the event of a change of control is not included. However, the Franchise Agreement does address ownership changes. Specifically, it states that individuals with legal or beneficial ownership interests in the franchisee are bound by the agreement's restrictions on ownership changes. This suggests that any change of control is subject to certain requirements and limitations as defined in the Franchise Agreement.
Because the exact notice period is not specified in the provided excerpts, prospective franchisees should carefully review the full Franchise Agreement to understand the obligations related to ownership transfers. This includes understanding what constitutes a change of control, the process for requesting approval, and any potential transfer fees or other requirements.
To gain a comprehensive understanding of the change of control process, a potential Brueggers Bagels franchisee should ask the franchisor for clarification on the specific notice period required, the criteria used to evaluate proposed transferees, and any other conditions that must be met to obtain approval for a change of control. This information is crucial for making informed decisions about the franchise investment and planning for future business transitions.