What is the procedure if a Brueggers Bagels franchisee loses possession of the premises?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2.3. If you cease to operate or otherwise abandon the Bakery for two (2) consecutive business days during which you are otherwise required to be open, without our prior written consent to do so, or if you lose the right to possession of the Premises, or forfeit the right to do or transact business in the jurisdiction where the Premises are located.
However, if, through no fault of your own, the Premises are damaged or destroyed by an event such that repairs or reconstruction cannot be completed within sixty (60) days thereafter, then you will have thirty (30) days after that event in which to apply for our approval to relocate and/or reconstruct the Bakery, which approval will not be unreasonably withheld;
Upon any termination of the Lease or of Tenant's right to possession of the Premises (even if the Lease is not terminated), Franchisor, within thirty (30) days after receipt of Landlord's written request and in accordance with the provisions of this paragraph, will make all modifications to the Premises which Franchisor deems reasonably necessary to protect or remove the System or the Proprietary Marks from the Premises.
Following the expiration of such thirty (30) day period, it shall conclusively be presumed that no further modifications to the Premises are reasonably necessary to protect the System or the Proprietary Marks, Franchisor shall have no further right to enter the Premises or to make any modifications thereto, and Franchisor has no objection to Landlord using or disposing of any and all fixtures and other personal property of Tenant then remaining in the Premises in such manner as Landlord, in its sole discretion, considers appropriate without being subject to any claim by Franchisor that such use or disposition violates or infringes the System or the Proprietary Marks.
Promptly following the completion of any modifications to the Premises pursuant to this paragraph, Tenant, at its expense, shall repair any damage caused to the Premises in connection with the modifications and leave the Premises in good repair and condition.
The "System" shall mean all systems developed by Franchisor relating to the preparation and promotion of fresh bakery goods, entrees, sandwiches, soups, salads, pastries, gourmet coffees, wine, and privatelylabeled retail items such as soups, salad dressings and gourmet coffees in connection with its bakery café operations.
The "Proprietary Marks" shall mean Franchisor's and its affiliates' trade names, service marks, trademarks, copyrights, logos, emblems, and indicia of origin, including but not limited to the mark "BRUEGGER'S BAGELS " and such other trade names, service marks, trademarks, copyrights, logos, emblems, and indicia of origin as may hereafter be provided to Tenant by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, if a franchisee loses the right to possession of their premises, it constitutes an event of default under the franchise agreement. However, if the loss of possession is due to damage or destruction of the premises through no fault of the franchisee, and repairs or reconstruction cannot be completed within 60 days, the franchisee has 30 days after the event to apply for Brueggers Bagels' approval to relocate or reconstruct the bakery. Brueggers Bagels' approval for relocation or reconstruction will not be unreasonably withheld.
Additionally, the FDD states that upon any termination of the lease or the franchisee's right to possession, Brueggers Bagels has the right to enter the premises and make modifications deemed reasonably necessary to protect or remove the System or Proprietary Marks from the premises. This must be done within 30 days of receiving a written request from the landlord. After this 30-day period, it is presumed that no further modifications are needed, and Brueggers Bagels loses the right to enter the premises or make further modifications. The landlord can then use or dispose of any remaining fixtures and personal property without any claim from Brueggers Bagels that such action infringes on the System or Proprietary Marks.
Following any modifications made by Brueggers Bagels, the franchisee is responsible for repairing any damage caused to the premises due to the modifications and must leave the premises in good repair and condition at their own expense. This ensures that the premises are returned to a suitable state after Brueggers Bagels has taken steps to protect its System and Proprietary Marks. The "System" includes all systems developed by Brueggers Bagels relating to the preparation and promotion of fresh bakery goods, entrees, sandwiches, soups, salads, pastries, gourmet coffees, wine, and privately-labeled retail items. The "Proprietary Marks" include Brueggers Bagels' trade names, service marks, trademarks, copyrights, logos, emblems, and indicia of origin, such as the mark "BRUEGGER'S BAGELS."