What is the purpose of the 'THIS AGREEMENT REGARDING LEASED LOCATION BY TENANT' in relation to Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT E TO BRUEGGER'S BAGELS DEVELOPMENT AGREEMENT FORM OF AGREEMENT REGARDING LEASED LOCATION BY TENANT
AGREEMENT REGARDING LEASED LOCATION BY TENANT
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, the 'AGREEMENT REGARDING LEASED LOCATION BY TENANT' outlines the rights and responsibilities of the landlord, Brueggers Bagels (referred to as Franchisor), and the tenant (the franchisee) concerning the leased premises. This agreement ensures that Brueggers Bagels can protect its System and Proprietary Marks, which include trade names, service marks, trademarks, copyrights, logos, and other identifying elements, at the location. The agreement also addresses scenarios involving the termination of the lease or the tenant's right to possession.
Specifically, the agreement allows Brueggers Bagels to enter the premises to make necessary modifications to protect its System or Proprietary Marks. However, Brueggers Bagels cannot make exterior or structural changes, except for removing exterior signs bearing its Proprietary Marks, nor can it remove fixtures or personal property that the tenant is not entitled to remove per the lease terms. The agreement also covers assignment and subleasing, allowing the tenant to assign the lease or sublet the premises to Brueggers Bagels, its affiliates, or other franchisees without the landlord's prior consent, although the tenant remains liable for the lease obligations.
Furthermore, the agreement includes use restrictions for the landlord, preventing them from leasing space in the same shopping center to competing businesses that primarily sell similar products, such as fresh bakery goods, sandwiches, soups, gourmet coffees, and wine. This restriction aims to protect the franchisee's market position. In the event the landlord needs to evict the tenant to deliver possession to Brueggers Bagels, Brueggers Bagels may be required to deposit funds into an escrow account to cover any defaults of the tenant, ensuring the landlord can deliver the premises. This agreement ensures the lease remains unchanged except for the terms modified within the agreement, and in case of a conflict between the lease and this agreement, the provisions of this agreement shall take precedence.