How will Brueggers Bagels obtain payment of weekly royalty fees?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate an account at a commercial bank for payment of weekly royalty fees and any other amounts you owe us. We will obtain payment by electronic debit to your account each week, and you must sign and return to us the forms we periodically require in order to authorize such debits. You must keep the account balance sufficient to pay all amounts owed. Failure to do so will be subject to the default provisions of your Franchise Agreement or License Agreement.
You must reimburse any costs or expenses we incur as a result of your designated account being insufficient.
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees must authorize electronic debits from a designated commercial bank account for payment of weekly royalty fees and any other amounts owed to Brueggers Bagels. Franchisees are required to sign and return forms authorizing these debits and must maintain a sufficient balance in the account to cover all payments.
Failure to maintain a sufficient balance in the designated account will trigger the default provisions outlined in the Franchise Agreement or License Agreement. In addition to the standard default terms, Brueggers Bagels specifies that the franchisee is responsible for reimbursing any costs or expenses incurred by Brueggers Bagels as a result of insufficient funds in the designated account.
This electronic debit system is a fairly standard practice in franchising, ensuring timely and consistent payment of royalties. Prospective Brueggers Bagels franchisees should be aware of the importance of maintaining adequate funds in their designated bank account to avoid penalties, default consequences, and reimbursement of any expenses incurred by Brueggers Bagels due to insufficient funds.