What obligations survive the termination of the Brueggers Bagels Development Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guaranty will terminate upon the termination or expiration of the Agreement, except that all obligations and liabilities of the Guarantors arising from events which occurred on or before the effective date of termination will remain in full force and effect until satisfied or discharged by the Guarantors, and all covenants which by their terms continue in force after the expiration or termination of the Agreement will remain in force according to their terms.
Upon the death of a Guarantor, the Guarantor's estate will be bound by this Guaranty, but only for obligations existing at the time of death. The obligations of the surviving Guarantors will continue in full force and effect.
If the Guarantor resides in a community property state, the Guarantor will cause his or her spouse, if any, to execute this Guaranty.
GUARANTOR: Spouse: Print Name: Print Name: GUARANTOR: Spouse: Print Name: Print Name: GUARANTOR: Spouse: Print Name: Print Name:
EXHIBIT E TO BRUEGGER'S BAGELS DEVELOPMENT AGREEMENT FORM OF AGREEMENT REGARDING LEASED LOCATION BY TENANT
AGREEMENT REGARDING LEASED LOCATION BY TENANT
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.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, several obligations remain in effect even after the Development Agreement terminates or expires. The guarantor's obligations, stemming from events that occurred before the termination date, remain fully enforceable until they are either satisfied or formally discharged. Additionally, any covenants within the agreement that are explicitly designed to continue beyond the agreement's expiration will remain in force according to their specific terms.
Specifically, the franchisee must cease all operations as a Brueggers Bagels, discontinue using any confidential methods, procedures, or techniques associated with the Brueggers Bagels system, including the brand names, marks, and other proprietary materials. All advertising matter must be withdrawn, and the franchisee can no longer represent themselves as a current or former Brueggers Bagels franchisee, unless otherwise provided.
Furthermore, the franchisee is obligated to return all manuals, records, correspondence, and instructions containing confidential information, trade secrets, or know-how related to the Brueggers Bagels system. They must also take necessary actions to cancel any assumed name, email address, or domain name registrations that include "Bruegger's" or any other proprietary marks, providing evidence of compliance within five days of termination or expiration. The franchisee also agrees not to use any reproduction, counterfeit, copy, or colorable imitation of the Proprietary Marks or the Works in connection with any other business which, in Bruegger's sole discretion, is likely to cause confusion, mistake, or deception or to dilute their and their affiliates' rights in and to the Proprietary Marks and the Works.
These stipulations ensure the protection of Brueggers Bagels's brand identity, confidential information, and competitive advantage, even after a Development Agreement concludes. Prospective franchisees should carefully review these post-termination obligations to understand the full scope of their responsibilities.