Is Brueggers Bagels required to establish a Marketing Co-op for every franchisee's area?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
to create a trust or fiduciary relationship of any kind or nature whatsoever among the parties as it relates to the SMF or our actions with respect thereto, including, but not limited to, collection of payments, maintenance of the bank account, bookkeeping, and disbursement of monies from the SMF. Except as expressly provided in this Section 14, we assume no direct or indirect liability or obligation to you with respect to maintenance, direction, or administration of the SMF.
- 14.5. Local Store Marketing. All Local Marketing must be approved by us pursuant to Section 14.9 below.
- 14.6. Joint Marketing Programs and Cooperatives. We have the right at any time and from time to time to establish, and thereafter modify (1) co-marketing programs in which we, franchisees and licensees join with suppliers or other third parties to cross-promote goods and services; (2) joint marketing efforts in which multiple franchisees and/or licensees contribute to a specific ad or event; and/or (3) local or regional marketing co-operatives ("Marketing Co-ops") that pool funds of franchisees on an ongoing basis to jointly promote the Proprietary Marks and the Bakeries of the Marketing Co-op members. You must participate in each applicable joint marketing program and comply with the rules of the program. The following provisions apply to Marketing Co-ops:
- 14.6.1. We have the right to designate any geographic area or set of common characteristics for purposes of establishing a Marketing Co-op. If a Marketing Co-op is applicable to your Bakery at the time the Bakery opens for business, you must join the Marketing Co-op. If a Marketing Co-op applicable to the Bakery is established during the Agreement Term, you must become a member and begin contributing no later than thirty (30) days after we approve the Marketing Co-op to begin operation. You will not have to contribute to more than one Marketing Co-op for the same Bakery at the same time. We (or our affiliates, as the case may be) will become a member of any Marketing Co-op that is applicable to a Bakery owned by us or our affiliates.
- 14.6.2. Each Marketing Co-op will adopt an agreement governing the organization and operation of the Marketing Co-op, subject to our approval. If the members of the Marketing Co-op do not sign an agreement within a reasonable time, you agree to sign our recommended form of Marketing Co-op Agreement. We reserve the right to change the form of organization, governing documents, and manner of operation of any Marketing Co-op, and you and the other members agree to implement any such change promptly after notice from us. No changes in the bylaws or other governing documents of a Marketing Co-op may be made without our prior written consent.
- 14.6.3. Each Marketing Co-op will be organized for the exclusive purpose of developing, administering and executing advertising programs for its members.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, Brueggers Bagels is not required to establish a Marketing Co-op for every franchisee's area. However, Brueggers Bagels has the right to establish Marketing Co-ops. They can designate any geographic area or set of common characteristics for establishing a Marketing Co-op.
If a Marketing Co-op is applicable to a franchisee's Brueggers Bagels Bakery when it opens, the franchisee must join the co-op. If a Marketing Co-op is established during the term of the Franchise Agreement, the franchisee must become a member no later than 30 days after Brueggers Bagels approves the Marketing Co-op to begin operation.
Brueggers Bagels also retains significant control over any Marketing Co-ops that are established. They have the right to change the form of organization, governing documents, and manner of operation of any Marketing Co-op. Franchisees are obligated to implement any such change promptly after receiving notice from Brueggers Bagels. Additionally, no changes to the bylaws or other governing documents of a Marketing Co-op can be made without the prior written consent of Brueggers Bagels.
Brueggers Bagels may grant a franchisee an exemption from the requirement of membership in a Marketing Co-op, or from the obligation to contribute, for any length of time. This exemption can include a reduction, deferral, or waiver of the contribution, upon written request of the franchisee stating reasons which Brueggers Bagels deems sufficient to support the exemption. Brueggers Bagels' decision concerning any request for exemption will be final.