Can Brueggers Bagels request financial statements from the parent or guarantor of a franchisee's obligations?

Based on the 2025 Brueggers Bagels Franchise Disclosure Document, the franchisor can request certain financial information from franchisees and related parties. Specifically, in the context of transferring a franchise, Brueggers Bagels needs to be satisfied that the transferee (the new franchisee) meets certain standards. If the transferee is a business entity, Brueggers Bagels needs to be satisfied that its owners and management team meet educational, managerial, and business standards.

Brueggers Bagels also needs to confirm that the transferee possesses a good moral character, business reputation, and credit rating, and has the aptitude and ability to conduct the business. Critically, the transferee must demonstrate that they have adequate financial resources and capital to fulfill the obligations under the Franchise Agreement in a timely manner. While the FDD does not explicitly state that Brueggers Bagels will request financial statements from a parent or guarantor, it does state that each person who is or becomes an owner, director or officer of Franchisee must execute a Guaranty in the form prescribed by Brueggers Bagels.

Therefore, while the FDD doesn't directly address the request of financial statements from a parent or guarantor, it emphasizes the need for transferees and their owners/management to demonstrate financial stability and meet certain business standards, suggesting that financial disclosures may be required to meet these conditions. A prospective franchisee should clarify with Brueggers Bagels the specific financial documentation required during the transfer process or for guarantors.