When participating in a Brueggers Bagels Off-Premises Program, might a franchisee be required to purchase a delivery vehicle?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Off-Premises Programs. You may request our permission to establish Off-Premises Programs either on your own or in conjunction with one or more outside vendors. Off-Premises Programs may be mandatory or optional for franchisees and may include online and telephone ordering features. If we establish a mandatory Off-Premises Program or you choose to participate in a voluntary program, you agree to pay the fees and costs associated with participation and to comply with all other rules and procedures that we specify for the program in the Manual or otherwise in writing. You may have to purchase equipment, including a delivery vehicle, in order to participate in an Off-Premises Program. We may define service areas for Off-Premises Programs that differ from your Protected Area. If multiple Bakeries are able to provide catering services in the same area, we may establish rules and policies to coordinate their activities and prevent customer confusion. Upon receipt of notice from us, you must stop directly soliciting catering customers and providing catering services in the adjacent area and turn over all customer information that you have acquired relating to that area.
Source: Item 12 — TERRITORY (FDD pages 42–45)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, franchisees participating in Off-Premises Programs may be required to purchase specific equipment, including a delivery vehicle. These Off-Premises Programs, which may be either mandatory or optional, allow franchisees to extend their services beyond the traditional bakery setting through online and telephone ordering. Participation in these programs requires franchisees to adhere to the rules and procedures set by Brueggers Bagels, as outlined in the manual or in writing, and to cover all associated fees and costs.
This requirement to purchase a delivery vehicle can have significant financial implications for a prospective Brueggers Bagels franchisee. The cost of a suitable vehicle, along with its maintenance, insurance, and operational expenses, would add to the initial investment and ongoing operational costs. Franchisees should carefully evaluate the potential return on investment from participating in Off-Premises Programs, considering the additional expenses and the potential increase in revenue.
It is important for potential franchisees to clarify with Brueggers Bagels the specifics of any mandatory or voluntary Off-Premises Programs, including the types of equipment required, the associated costs, and the rules governing participation. Understanding the potential service areas and coordination policies with other bakeries is also crucial. Franchisees should also inquire about the criteria used to select bakeries for order fulfillment and the possibility of customers overriding the automatic selection, as this could impact their potential sales from the program.