What obligations related to the Brueggers Bagels franchise agreement survive its expiration or termination?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
o have the right to take any lesser action instead of terminating this Agreement, including but not limited to terminating, modifying, or eliminating completely, the Protected Area described in Section 2.2 above.
- 17.9. Reservation of Rights under Section 17.8. If any rights, options, arrangements, or areas are terminated or modified in accordance with Section 17.8 above, such action shall be without prejudice to our right to terminate this Agreement in accordance with other sections of this Section 17, and/or to terminate any other rights, options or arrangements under this Agreement at any time thereafter for the same default or as a result of any additional defaults of the terms of this Agreement.
18. OBLIGATIONS UPON TERMINATION OR EXPIRATION
- 18.1. De-Identification. Except as provided in Section 18.2 below, upon termination or expiration of this Agreement, you must:
- 18.1.1. Cease to operate the Bakery;
- 18.1.2. Cease to use the confidential methods, procedures, and techniques associated with the System, the "Bruegger's" and "Bruegger's Bagels" names and marks, all other Proprietary Marks, the Works, and all other distinctive forms, slogans, signs, symbols, Web sites, domain names, e-mail addresses, other electronic identifiers, and devices associated with the Bakery or the System; withdraw all advertising matter (including electronic marketing); remove from the Premises all signs, letterhead, and other articles which display the Proprietary Marks; and except as provided in Section 18.2 below not thereafter, directly or indirectly, represent yourself to the public or hold yourself out as a present or former franchisee of ours;
- 18.1.3. Deliver to us 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, all of which you acknowledge to be our property;
- 18.1.4. Take such action as may be necessary to cancel any assumed name registration or equivalent registration, and any e-mail address or domain name registration,
obtained by you which contains "Bruegger's" or any other Proprietary Marks, and furnish evidence satisfactory to us of compliance with this obligation within five (5) days after termination or expiration of this Agreement. You hereby appoint us your attorney-in-fact to carry out the requirements of this Section 18.1.4, if you fail to do so within such five (5) day period;
- 18.1.5. Not use any reproduction, counterfeit, copy, or colorable imitation of the Proprietary Marks or the Works in connection with any other business which, in our sole discretion, is likely to cause confusion, mistake, or deception or to dilute our and our affiliates' rights in and to the Proprietary Marks and the Works. You must not use any designation of origin or description or representation which, in our sole discretion, falsely suggests or represents an association or connection with us.
- 18.1.6. Promptly pay all sums owing to us and our affiliates. In the event of termination for your default, the sums will include all damages, costs, and expenses incurred by us as a result of the default, including, but not limited to, reasonable attorneys' fees.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, several obligations remain in effect even after the franchise agreement expires or is terminated. These obligations primarily revolve around protecting Brueggers Bagels' brand, confidential information, and competitive interests.
Specifically, a former franchisee must cease operating the bakery and discontinue using any confidential methods, procedures, or techniques associated with the Brueggers Bagels system. This includes refraining from using the "Bruegger's" and "Bruegger's Bagels" names and marks, all proprietary marks, distinctive forms, slogans, signs, symbols, websites, domain names, email addresses, and other electronic identifiers. The franchisee must also withdraw all advertising matter and not represent themselves as a current or former Brueggers Bagels franchisee.
Furthermore, the franchisee is obligated to deliver all manuals, records, correspondence, and instructions containing confidential information, trade secrets, or know-how related to the Brueggers Bagels system. They must also take action to cancel any assumed name, email address, or domain name registrations containing "Bruegger's" or other proprietary marks. Additionally, for one year after the franchise agreement's expiration or termination, the franchisee is restricted from engaging in any competing business within ten miles of the former Brueggers Bagels location or within five miles of any other Brueggers Bagels restaurant, unless otherwise approved in writing by Brueggers Bagels.