What is the process if a Brueggers Bagels franchisee or owner is charged with a serious criminal offense?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2.4. If you or any owner or principal officer of Franchisee is convicted of or pleads guilty or no contest to a felony or other crime or offense that we believe is reasonably likely to have an adverse effect on the Bakery, the System, the Proprietary Marks, the goodwill associated therewith, or our interest therein.
Once an individual has been arrested for or formally charged with a serious criminal offense, we will have the right: (i) to require that the individual be suspended from any active role in the franchised business pending final disposition of the charges; and (ii) if the person(s) charged include the Operating Partner, to take over operation of the Bakery and to manage the Bakery pending final disposition of the charges.
If we exercise the right in clause (ii), we may charge a reasonable management fee for our services;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, if a franchisee, owner, or principal officer is charged with a serious criminal offense that Brueggers Bagels believes could negatively impact the franchise, the system, the brand's trademarks, or its goodwill, Brueggers Bagels has specific rights.
First, Brueggers Bagels can require the individual to be suspended from any active role in the franchised business while the charges are pending. This means the person cannot participate in the daily operations or decision-making processes of the Brueggers Bagels bakery.
Second, if the person charged is the Operating Partner, Brueggers Bagels has the right to take over the bakery's operation and manage it until the charges are resolved. If Brueggers Bagels exercises this right, they can charge a reasonable management fee for their services. This ensures that the Brueggers Bagels location continues to operate under the brand's standards even if the Operating Partner is unable to fulfill their duties due to legal issues.