Does Brueggers Bagels need franchisee consent to sell securities?

Based on the 2025 Franchise Disclosure Document, Brueggers Bagels requires franchisee consent regarding ownership interests. Specifically, if a franchisee wishes to transfer their ownership in the Brueggers Bagels franchise, they must obtain consent from BFC (Bruegger's Franchise Corporation) if they still have any legal or beneficial ownership interest in the franchise. This consent can be withheld at BFC's discretion. This condition applies during the term of the Franchise Agreement. The restriction extends to indirect ownership, such as through an affiliate or family members.

This requirement ensures that Brueggers Bagels maintains control over who is involved in the operation and ownership of its franchises. It allows them to vet potential new owners and ensure they meet the brand's standards. This is a fairly standard practice in franchising, as franchisors want to protect their brand reputation and ensure consistency across all locations.

For a prospective Brueggers Bagels franchisee, this means that if they ever decide to sell their interest in the franchise while still retaining some form of ownership, they will need to get approval from Brueggers Bagels. This could potentially complicate the sale process, as the franchisor's approval is an additional hurdle. It would be prudent for a potential franchisee to understand the criteria Brueggers Bagels uses to grant or withhold consent for such transfers to avoid issues down the road.