What did the preliminary injunction prohibit Brueggers Bagels from doing?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Colorado Bagel Company, LLC v. Bruegger's Franchise Corporation, Case No. 2024CV33517 (D.Ct. Denver, CO). The plaintiff in this case, a Bruegger's franchisee, filed this lawsuit on November 14, 2024. The case involves the franchisee's operation of its franchised store after the expiration of the franchise agreement, and follows our termination of the at-will relationship. The plaintiff's complaint includes claims for breach of contract, breach of the implied covenant of good faith and fair dealing, promissory estoppel, declaratory relief and injunctive relief, and seeks damages in an unspecified amount, preliminary and permanent injunctive relief, costs, and interest. We answered the complaint, denying the material allegations, and asserted counterclaims against the plaintiff and its members. On November 21, 2024, the court granted the plaintiff's application for a temporary restraining order, prohibiting us from effecting the termination. On December 22, 2024, the court granted the plaintiff's motion for a preliminary injunction, prohibiting us from effecting the termination. The case is currently in the discovery phase.
Source: Item 3 — LITIGATION (FDD page 12)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a preliminary injunction was granted in favor of a franchisee in a case filed on November 14, 2024. The legal action, initiated by Colorado Bagel Company, LLC, against Bruegger's Franchise Corporation, involved the franchisee's operation of its store after the franchise agreement had expired, following Brueggers Bagels's termination of their at-will relationship. The franchisee's complaint included claims such as breach of contract, breach of implied covenant, promissory estoppel, and requests for declaratory and injunctive relief.
The court's preliminary injunction, issued on December 22, 2024, specifically prohibited Brueggers Bagels from effecting the termination of the franchise agreement. This means that despite Brueggers Bagels's attempts to end the franchise relationship, the court ordered that the termination could not proceed, at least temporarily, until further legal proceedings could take place. The case is currently in the discovery phase, which involves gathering evidence and information to support each party's claims.
For a prospective franchisee, this litigation highlights the importance of understanding the terms and conditions of the franchise agreement, particularly regarding termination and renewal. It also demonstrates that franchisees have the potential to seek legal remedies, such as injunctive relief, to protect their interests in certain disputes with the franchisor. However, the outcome of any litigation is inherently uncertain, and legal battles can be costly and time-consuming for both parties.