Is Brueggers Bagels obligated to develop or designate computer software programs for franchisees?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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If Franchisee is a corporation, partnership, or limited liability company, the owner(s) of Franchisee identified on Exhibit A to this Agreement must execute our standard form of Guaranty.
BACKGROUND
A. We and our affiliates (being any person or entity that directly or indirectly owns or controls us or that is directly or indirectly owned or controlled by us or is under common control with us), through significant expenditures of time, skill and money have developed a proprietary system relating to the preparation and promotion of distinctive bagels, baked goods and cream cheese and the establishment and operation of restaurants specializing in the sale of the bagels, baked goods, cream cheese, sandwiches, soups, salads, and other food and beverage items (the "System").
B. The distinguishing characteristics of the System include bagels and cream cheese products prepared in accordance with secret and proprietary recipes and manufacturing processes owned by us and our affiliates; distinctive exterior and interior Bakery design, décor, color scheme, fixtures, and furnishings; standards and specifications for ingredients, food preparation, equipment, supplies, and Bakery operations, as well as uniform standards, specifications, methods, policies and procedures for Bakery operations, proprietary inventory and management control, training and assistance; and advertising and promotional programs; all of which may be changed, improved, and further developed by us and our affiliates from time to time.
C. Through our dedicated operations, marketing methods, and merchandising policies, we have developed the reputation, public image and goodwill of the System in the United States and established a firm foundation for our franchised and corporate owned Bakery operations consisting of the highest standards of training, management, supervision, appearance, services and quality of products.
D. We identify the System and the restaurants operating under it ("Bakeries") by means of the marks "Bruegger's" and "Bruegger's Bagels" and such other trade names, service marks, trademarks, logos, emblems, and indicia of origin as we may hereafter designate for use in connection with the System (the "Proprietary Marks").
E. Franchisee 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.
F.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not specify whether Brueggers Bagels is obligated to develop or designate computer software programs for franchisees. While the FDD mentions the 'System' which includes various operational aspects like recipes, design, standards for food preparation, and inventory management, it does not explicitly state any obligations regarding software development or designation. The 'System' also includes methods, policies and procedures for Bakery operations, proprietary inventory and management control, training and assistance; and advertising and promotional programs. These elements are subject to change and further development by Brueggers Bagels.
However, the FDD does mention that upon termination or expiration of the agreement, the franchisee must cease using electronic identifiers and devices associated with the System. This implies that some form of electronic or software system is likely in use, but the details of its provision and support are not clarified. The franchisee also needs to deliver to Brueggers Bagels the Manuals and all other records, correspondence, and instructions in your possession or control, in any medium, that contain confidential information, trade secrets, or know-how relating to the System or the operation of a Bakery.
To fully understand the obligations regarding software, a prospective Brueggers Bagels franchisee should seek clarification from the franchisor on the following points: What specific software programs are required for operating a franchise? Is there a designated or approved list of software vendors? What are the costs associated with these software programs, including initial purchase, licensing fees, and updates? Who is responsible for providing technical support and maintenance for the software? Are there any training programs available for franchisees and their staff on how to use the software effectively?