Does Brueggers Bagels have an obligation to develop or designate computer software programs for franchisees?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
IMITATIONS ON CLAIMS AND DAMAGES 18 | | | 22. | ACKNOWLEDGMENTS 19 EXHIBIT A – DEVELOPMENT AREA EXHIBIT B – DEVELOPMENT SCHEDULE EXHIBIT C – DISCLOSURE OF OWNERSHIP INTERESTS (DEVELOPER) EXHIBIT C-1 DISCLOSURE OF OWNERSHIP INTERESTS (OPERATING ENTITY) (IF APPLICABLE) EXHIBIT D – GUARANTY & UNDERTAKING EXHIBIT E – FORM OF AGREEMENT REGARDING LEASED LOCATION BY TENANT EXHIBIT F – CONFIDENTIALITY AND NON-COMPETITION AGREEMENT EXHIBIT G – DISCLOSURE ACKNOWLEDGEMENT STATEMENT | | EXHIBIT H – LIABILITY WAIVER
BRUEGGER'S DEVELOPMENT AGREEMENT
| THIS DEVELOPMENT AGREEMENT ("Agreement") is entered into on | |||
|---|---|---|---|
| between BRUEGGER'S FRANCHISE CORPORATION, a Delaware corporation ("Franchisor," "we," or | "us"), and, a, with its principal place of business at ("Developer" or "you"). |
BACKGROUND
- A. We and our affiliates, 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, baked goods, cream cheese products and other food and beverage items 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;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
Based on the 2025 Brueggers Bagels Franchise Disclosure Document excerpts, it is not explicitly stated whether Brueggers Bagels has an obligation to develop or designate computer software programs for franchisees. However, the FDD does mention the existence of a proprietary system with distinguishing characteristics such as proprietary inventory and management control. It also mentions that upon termination of the franchise agreement, the franchisee must cease to use confidential methods, procedures, and techniques associated with the Brueggers system. This suggests that software or digital systems could be part of the confidential operating procedures.
To fully understand the obligations regarding software, a prospective Brueggers Bagels franchisee should seek clarification from the franchisor. Specifically, they should inquire about what software programs are required to operate the franchise, whether these are proprietary or third-party systems, who is responsible for updates and maintenance, and what costs are associated with these systems. Understanding the technology requirements and support provided is crucial for assessing the overall investment and operational aspects of the franchise.
In summary, while the excerpts highlight the importance of the Brueggers Bagels's System and the franchisee's obligation to maintain its confidentiality and adhere to its standards, the specific details regarding software obligations are not provided. Further investigation and direct communication with the franchisor are necessary to obtain a comprehensive understanding of this aspect of the franchise.