factual

How is the 'Protected Area' defined for a Brueggers Bagels franchise, and where can exceptions to the standard radius be found?

Brueggers_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

on facility.

  • 1.10. "Operating Partner" means the individual whose role is defined in Section 8.21 and who is identified in Exhibit A.
  • 1.11. "Premises" means the location that we have approved for the Bakery, as specified in Exhibit A.
  • 1.12. "Protected Area" means the area determined by drawing a circle, with the front door of the Premises as its center, having a radius of one and a half (1.5) miles, unless a different area is specified in Exhibit A to this Agreement.

2. FRANCHISE GRANT AND TERRITORIAL PROTECTION

  • 2.1. Grant. We grant you the right, and you undertake the obligation, on the terms and conditions set forth in this Agreement, to establish and operate a Bakery at the Premises and to use the Proprietary Marks and the System in strict conformity with our quality control standards and specifications which are a material part of the System, solely in connection with the Bakery.

  • 2.2. Territorial Protection. While this Agreement is in effect, as long as you are not in default beyond any applicable cure period, we will not establish a Bakery or franchise or license anyone other than you to establish a Bakery within the Protected Area, subject to the rights reserved in Section 2.3 below.

  • 2.3. Rights Reserved. Except as expressly provided in Section 2.2 above, we and our affiliates may engage in any business activities, under any name, at any location. Without limiting the generality of the foregoing, we and our affiliates retain the rights, despite anything to the contrary in Section 2.2 and regardless of the proximity to or effect on the Bakery that you operate at the Premises:

  • 2.3.1. To own, acquire, establish, operate, and franchise or license others to operate Bakeries located outside of the Protected Area;

  • 2.3.2. To own, acquire, establish, operate, and franchise or license others to operate outlets at Non-Traditional Locations under the Bruegger's name or any other name, whether inside or outside of the Protected Area;

  • 2.3.3. To own, acquire, establish, operate, and franchise or license others to operate outlets at Co-Branded Locations, whether inside or outside of the Protected Area;

  • 2.3.4. To own, acquire, establish, operate, and franchise or license others to operate businesses that are not operated under the System and that do not use the Proprietary Marks licensed to you under this Agreement, even if those businesses offer or sell products that are the same as or similar to the products offered by Bruegger's Bakeries;

  • 2.3.5. To develop, manufacture, have manufactured, market, sell and distribute, at retail or wholesale, and license others to manufacture, sell or distribute, packaged and prepared food products or any other goods or services under the Bruegger's mark or any other name or mark, through any channel of distribution other than a Bakery, including but not limited to the Internet, Non-Traditional Locations, Co-Branded Locations, supermarkets, specialty food stores, convenience stores, wholesale clubs, and retail food stores, anywhere in the world; and

  • 2.3.6. To use the Bruegger's brand in other lines of business besides the operation of restaurants, anywhere in the world.

**3.

Source: Item 22 — CONTRACTS (FDD page 61)

What This Means (2025 FDD)

According to the 2025 Brueggers Bagels Franchise Disclosure Document, a franchisee is granted a protected area. The standard protected area is defined as the area within a circle of one and a half (1.5) miles, using the front door of the Brueggers Bagels location as the center, although this can be modified and specified in Exhibit A of the Franchise Agreement. During the agreement, Brueggers Bagels will not establish or franchise another to establish a bakery within the franchisee's protected area, as long as the franchisee remains in compliance with the agreement.

However, Brueggers Bagels retains certain rights that allow them to operate or franchise other outlets, even within a franchisee's protected area. These exceptions include the rights to operate or franchise bakeries outside the protected area, operate outlets at Non-Traditional Locations (such as shopping malls, universities, or airports) under the Bruegger's name or any other name, and operate Co-Branded Locations, regardless of whether these are inside or outside the protected area.

Brueggers Bagels also retains the right to operate businesses that are not under the Brueggers Bagels system and do not use the Brueggers Bagels Proprietary Marks, even if they sell similar products. They can also manufacture, market, sell, and distribute packaged and prepared food products through various channels, such as the internet, supermarkets, and convenience stores, under the Bruegger's mark or any other name. Furthermore, Brueggers Bagels can use the Bruegger's brand in other lines of business besides restaurants, anywhere in the world. These rights are reserved by Brueggers Bagels and its affiliates, irrespective of their proximity to or effect on the franchisee's bakery.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.