What is the non-refundable initial franchise fee for a new Brueggers Bagels franchisee?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
red to be disclosed in this item.
ITEM 5 INITIAL FEES
Franchise Fee. You must pay us a non-refundable initial franchise fee when you sign the Franchise Agreement. The initial franchise fee is $35,000. The initial franchise fee is uniform for all new franchisees receiving this offering. We have no obligation to refund the initial franchise fee under any circumstances.
Development Fee. If we offer and you sign a Development Agreement, you must pay us a nonrefundable fee ("Development Fee") based on the number of Bakeries that you commit to open in the Development Area in accordance with your Development Schedule. Unless otherwise agreed, the minimum number of Bakeries you will be required to develop is two. The Development Fee is $10,000 per Bakery that you commit to open. This formula is uniform for all new developers receiving this offering.
As you develop each Bakery required by your Development Schedule, you must sign the form of Franchise Agreement that we are then offering to new franchisees and pay us the initial franchise fee required by that agreement, less a credit of $10,000 from the Development Fee. The initial franchise fee and other terms and conditions of the Franchise Agreement we are then offering may be substantially different from those of the Franchise Agreement in Exhibit A to this disclosure document.
Non-traditional locations. If you enter into a License Agreement with us, you must pay us a nonrefundable initial license fee of $12,500. You must pay the initial license fee in full when you sign the License Agreement. The initial license fee is uniform for all new licensees receiving this offering.
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The Development Fee, Initial Franchise Fee, and License Fee are fully earned upon receipt and are nonrefundable, even if you do not open the Bakery to which the fee applies, if you do not satisfactorily complete the requisite training, if contingencies in your lease are not satisfied, if you later close the Bakery, or if the Franchise Agreement, License Agreem
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the standard initial franchise fee is $35,000. This fee is non-refundable and must be paid when signing the Franchise Agreement. The FDD specifies that this fee is uniform for all new franchisees. This means that all new Brueggers Bagels franchisees will be charged the same initial franchise fee of $35,000.
However, the FDD also mentions a Development Agreement option, where franchisees commit to opening multiple Brueggers Bagels locations. In this case, a Development Fee of $10,000 per Bakery is required. When the franchisee develops each Bakery, they must sign a Franchise Agreement and pay the initial franchise fee, but they will receive a credit of $10,000 from the Development Fee.
For franchisees interested in non-traditional locations, Brueggers Bagels offers a License Agreement with a nonrefundable initial license fee of $12,500. This fee is also uniform for all new licensees. It's important to note that all fees, including the Initial Franchise Fee, Development Fee, and License Fee, are fully earned upon receipt and are nonrefundable, regardless of whether the Bakery opens, training is completed, or the agreement is terminated.
Prospective franchisees should carefully consider these fees and their implications. The non-refundable nature of the fees means that franchisees will not receive a refund under any circumstances, even if they are unable to open their Brueggers Bagels location. It is crucial to have a solid business plan and secure financing before signing any agreements and paying these initial fees.