factual

How often is the Brueggers Bagels marketing contribution calculated?

Brueggers_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

and is non-refundable.

  • 5.2. Royalty. You must pay us a weekly royalty fee in an amount equal to five percent (5%) of the Gross Sales of the Bakery for the preceding Accounting Week. Unless otherwise designated by us in writing, an "Accounting Week" begins on Wednesday and ends on the following Tuesday.
  • 5.3. Marketing Contribution. You must make a weekly Marketing Contribution as specified in Section 14.2 below.
  • 5.4. Payment Method. You must designate an account at a commercial bank of your choice (the "Account") for the payment of amounts due to us or our affiliates. You must furnish us and the bank with authorizations as necessary to permit us to make withdrawals from the Account by electronic funds transfer. Each week, we will transfer from the Account an amount equal to the royalty fees and NMF contribution due from you based on Gross Sales for the preceding week, as well as any other fees due to us or our affiliates. You agree to maintain sufficient funds in the Account at all times to cover all royalty fees, Brand Marketing Fund contributions and other fees payable to us or our affiliates. If funds in the Account are insufficient to cover the amounts payable at the time we make our weekly electronic funds transfer, the amount of the shortfall will be deemed overdue.
  • 5.5. Interest and Late Fees. If any sums required to be paid by you to us under this Agreement are not received in full by us when due, we will assess a late fee of one hundred dollars ($100) for each week that any payment is delinquent.

Source: Item 22 — CONTRACTS (FDD page 61)

What This Means (2025 FDD)

According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees are required to make a Marketing Contribution each week. This contribution is calculated as 3.5% of the Gross Sales from the preceding week. The payment of this Marketing Contribution is to be made in accordance with Section 5.4 of the agreement.

Section 5.4 specifies that Brueggers Bagels will transfer the royalty fees and the Brand Marketing Fund contribution each week from a designated account via electronic funds transfer. The franchisee must ensure that sufficient funds are available in the account to cover these weekly deductions.

Therefore, a Brueggers Bagels franchisee should anticipate a weekly calculation and payment of the Marketing Contribution, based on the prior week's sales, to support the brand's marketing efforts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.