Will Brueggers Bagels reimburse a franchisee's out-of-pocket costs for assisting in protecting the Proprietary Marks, and under what circumstances?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees are required to assist Brueggers Bagels in any action they take to protect their Proprietary Marks. Brueggers Bagels will reimburse a franchisee's out-of-pocket costs for assisting them in protecting the Proprietary Marks, unless the action results from the franchisee's improper use of the Proprietary Marks or a violation of the Franchise Agreement. This means that if a franchisee is acting in compliance with the Franchise Agreement and incurs expenses while helping Brueggers Bagels protect its trademarks, they can expect to be reimbursed for those costs.

This is a fairly standard practice in franchising, as franchisors typically want franchisees to be vigilant in protecting the brand's trademarks. However, the reimbursement is conditional. If the need to protect the marks arises because the franchisee themselves has misused the marks or violated the agreement, they will not be reimbursed. This provision ensures that franchisees are incentivized to adhere to the brand standards and properly use the trademarks.

For a prospective Brueggers Bagels franchisee, this means it is important to understand the proper use of the Proprietary Marks as outlined in the Franchise Agreement. By adhering to these guidelines, franchisees can avoid situations where they might be responsible for covering costs related to trademark protection. It also provides some financial security, knowing that if they are asked to assist in protecting the marks due to circumstances outside their control, their reasonable out-of-pocket expenses will be covered by Brueggers Bagels.