Can Brueggers Bagels require the transferee to enter into the then-current form of Franchise Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.5.4. That the transferee (and if the transferee is a corporation, partnership, or limited liability company, such owners of a beneficial interest in the transferee as we may request) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge all of your obligations under this Agreement; or, at our option, enter into our then current form of Franchise Agreement; and, if the transferor guaranteed your obligations under this Agreement, that the transferee guarantee the performance of all such obligations in writing in a form satisfactory to us;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, Brueggers Bagels has the option to require a transferee to enter into the then-current form of the Franchise Agreement. Specifically, as a condition of transfer, the transferee must enter into a written assignment, in a form satisfactory to Brueggers Bagels, assuming and agreeing to discharge all of the transferor's obligations under the existing agreement. However, Brueggers Bagels has the option to instead require the transferee to enter into the then-current form of the Franchise Agreement.
This means that if a franchisee wants to sell their Brueggers Bagels franchise, the person or entity buying it might have to sign a new franchise agreement that could have different terms and conditions than the original agreement. This could include changes to fees, royalties, operating standards, or other important aspects of the franchise relationship.
For a prospective franchisee looking to buy an existing Brueggers Bagels location, it's crucial to understand whether Brueggers Bagels will require them to sign the current franchise agreement. If so, they need to carefully review that agreement to understand their obligations and rights, as it may differ significantly from the agreement the seller originally signed. This also adds a layer of complexity to valuing the existing franchise, as the terms of the new agreement could impact the profitability and operational requirements of the business.