What is the number of Brueggers Bagels Bakeries the developer is obligated to develop?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
eserve the goodwill of the System and the Proprietary Marks. Any defined terms not otherwise defined herein shall have the meaning as set forth in the
Franchisor's Franchise Disclosure Document.
G. Developer understands and acknowledges the importance of Franchisor's uniformly high standards of quality and service and the necessity of operating the Bakeries in strict conformity with Franchisor's quality control standards and specifications.
NOW, THEREFORE, the parties agree 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 below. The initial franchise fee payable for each Bakery is Thirty Thousand and No/100 Dollars ($30,000) ("Initial Franchise Fee"). A portion of the Development Fee paid in accordance with Section 3 below will be applied against the Initial Franchise Fee for each Bakery, until the Development Fee is exhausted, as follows: We will apply Ten Thousand Dollars ($10,000 of the Development Fee paid by you toward the Initial Franchise Fee for the first three Bakeries that you open under your Development Agreement. Additional portions of the Development Fee will be applied to subsequent Initial Franchise Fees upon the signing of each subsequent Franchise Agreement at the rate of Five Thousand Dollars ($5,000) per Bakery, with the balance of the Initial Franchise Fee of Thirty Thousand Dollars ($30,000) payable when you sign each subsequent Fr
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels FDD, the number of Bakeries a developer is obligated to develop is determined by the Development Schedule outlined in Exhibit B of the Development Agreement. The developer is required to adhere to the schedule, and failure to open a Bakery within the specified time period or having fewer than the required number of Bakeries in operation by the deadlines can result in the termination of the agreement by Brueggers Bagels.
To fulfill the development rights, the developer must execute a separate Brueggers Bagels Franchise Agreement for each Bakery. The initial franchise fee for each Bakery is $30,000. A portion of the Development Fee is applied towards the Initial Franchise Fee, with $10,000 being applied for each of the first three Bakeries opened, and $5,000 for each subsequent Bakery.
The developer is responsible for identifying and securing sites for the Bakeries at their own expense, and must submit information about the proposed sites to Brueggers Bagels for approval. This information includes lease terms, landlord contact information, land acquisition terms, demographic criteria, and preliminary site plans. Brueggers Bagels has the sole discretion to accept or reject the proposed site within 30 days of receiving all the necessary information. However, Brueggers Bagels's approval of a site does not guarantee the Bakery's success or profitability, but only indicates that the site meets the minimum criteria for a Brueggers Bagels Bakery.
If Brueggers Bagels acquires a business operating within the Development Area and decides to convert it to a Bakery (an "Acquisition Site"), they will offer to sell the Acquisition Site to the developer at the price they paid for it, provided certain conditions are met. Any Acquisition Site purchased and converted counts toward the number of Bakeries required by the Development Schedule.