What is the non-refundable initial franchise fee for a Brueggers Bagels franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ee as follows:
1. DEVELOPMENT RIGHTS AND OBLIGATIONS, FRANCHISE AGREEMENT AND INITIAL FRANCHISE FEE
- 1.1. We grant you the right, and you undertake the obligation, pursuant to the terms and conditions of this Agreement, to develop _____________ (___) Bakeries, solely within the territory defined in Exhibit A to this Agreement (the "Development Area"). The Bakeries will be located only at the specific locations we approve in writing pursuant to Section 4.1 below. The Bakeries will be developed in accordance with the schedule set forth in Exhibit B to this Agreement (the "Development Schedule"). Exhibit A, the Development Area and Exhibit B the Development Schedule are incorporated herein as if fully set forth in this Agreement.
- 1.2. To exercise your development rights, you must execute a separate Bruegger's Franchise Agreement ("Franchise Agreement") with us for each Bakery to be developed, in accordance with Section 4.1 bel
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, the initial franchise fee for each bakery is $30,000. This fee is payable when the franchisee signs the Franchise Agreement. The FDD specifies that all amounts collected are deemed fully earned immediately upon receipt and are non-refundable.
For a prospective Brueggers Bagels franchisee, this means that upon signing the franchise agreement for a bakery location, they must pay the $30,000 initial franchise fee. This fee is non-refundable, regardless of whether the bakery ever opens or becomes successful. This is a standard practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise, including training, site selection assistance, and brand access.
However, the FDD also mentions a Development Fee that can be applied to offset the initial franchise fee. Specifically, $10,000 of the Development Fee is applied towards the Initial Franchise Fee for each of the first three Bakeries that the franchisee opens under the Development Agreement. For subsequent bakeries, $5,000 of the Development Fee will be applied to each Initial Franchise Fee. The franchisee is responsible for paying the balance of the $30,000 Initial Franchise Fee when signing each subsequent Franchise Agreement.
Therefore, while the initial franchise fee is $30,000, a portion of the Development Fee can be used to offset this cost, reducing the out-of-pocket expense for the franchisee, especially for the first few locations. It is important for potential franchisees to understand the terms and conditions related to the Development Fee and how it applies to the initial franchise fee for each bakery location.