What outstanding obligations must be satisfied before Brueggers Bagels consents to a franchise transfer?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
16.5.1. That all of your accrued monetary obligations and all other outstanding obligations to us and our affiliates have been satisfied;
16.5.2. That you are not in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you and us or our affiliates;
16.5.3. That the transferor executes a general release, in a form satisfactory to us, of any and all claims against us, our affiliates and their respective past, present, and future officers, directors, shareholders, and employees, in their corporate and individual capacities;
16.5.4. That the transferee (and if the transferee is a corporation, partnership, or limited liability company, such owners of a beneficial interest in the transferee as we may request) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge all of your obligations under this Agreement; or, at our option, enter into our then current form of Franchise Agreement; and, if the transferor guaranteed your obligations under this Agreement, that the transferee guarantee the performance of all such obligations in writing in a form satisfactory to us;
16.5.5. If the transferee is an existing Bruegger's developer or franchisee, that the transferee is not in default under its agreements with us and has a good record of customer service and compliance with our operating standards;
16.5.6. That the transferee, whether or not an existing Bruegger's developer or franchisee, demonstrates to our satisfaction that he or she meets (or, if the transferee is a business entity, that its owners and management team meet) our educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the business contemplated hereunder (as may be evidenced by prior related business experience or otherwise); and has adequate financial resources and capital to fulfill your obligations hereunder in a timely manner; and
16.5.7. That the transferor pays a transfer fee equal to 50% of the initial franchise fee we are then charging for new Bakery franchises.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, before a franchise can be transferred, several obligations must be met. First, all accrued monetary and other outstanding obligations to Brueggers Bagels and its affiliates must be satisfied. The franchisee must not be in default of any provision within the Franchise Agreement or any other agreement with Brueggers Bagels or its affiliates.
Additionally, the transferring franchisee must execute a general release of all claims against Brueggers Bagels, its affiliates, and their respective personnel. The new franchisee must enter into a written agreement, in a form satisfactory to Brueggers Bagels, assuming all obligations under the existing Franchise Agreement or, at Brueggers Bagels' option, enter into the then-current form of the Franchise Agreement. If the transferring franchisee had guaranteed obligations, the new franchisee must also provide a written guarantee.
Furthermore, if the new franchisee is an existing Brueggers Bagels developer or franchisee, they must not be in default under any existing agreements and must have a good record of customer service and compliance with Brueggers Bagels' operating standards. The new franchisee, whether existing or not, must demonstrate that they meet Brueggers Bagels' standards for education, management, and business acumen, possess good moral character, business reputation, and credit rating, and have adequate financial resources. Finally, the transferring franchisee must pay a transfer fee equal to 50% of the initial franchise fee that Brueggers Bagels is then charging for new Bakery franchises.