What obligation does the lessor have to provide copies of default notices to Brueggers Bagels?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, if a prospective franchisee's lease is approved by Brueggers Bagels, the lessor must provide Brueggers Bagels with copies of all default notices given to the franchisee under the lease. This requirement is one of the conditions Brueggers Bagels may impose when deciding whether to approve a lease agreement.

This stipulation protects Brueggers Bagels's interests by keeping them informed of any potential issues that could jeopardize the franchisee's ability to operate the business. By receiving copies of default notices, Brueggers Bagels can take proactive steps to address the situation, potentially preventing a disruption of the franchise operation. This also allows Brueggers Bagels to assess the franchisee's management and financial stability.

In the event of a default, Brueggers Bagels also retains the right to enter the premises to protect their Proprietary Marks or the System, or to cure any default under the Franchise Agreement or the lease. Furthermore, Brueggers Bagels has the option to assume the franchisee's rights under the lease upon default, expiration, or termination of the Franchise Agreement, ensuring business continuity and protecting their brand. These conditions are designed to minimize risks associated with franchisee operations and maintain the integrity of the Brueggers Bagels brand.