What are the requirements for a Brueggers Bagels franchisee to renew or extend their franchise term?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
| Provision | Section in Franchise Agreement or License Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 3.1 of the Franchise Agreement; Section 2.1 of the License Agreement; Paragraph 2 of Franchise Agreement Addendum | The term under the Franchise Agreement is the earlier of 10 years from the date the Bakery opens, or 11 years from the effective date of the agreement; the term under the License Agreement is five years from the effective date of the agreement, and 10 years for all airport locations. |
| b. Renewal or extension of the term | Section 3.2 of the Franchise Agreement; Section 2.2 of the License Agreement | Provided we are still franchising and have not made a decision to withdraw from the geographic market of the Bakery, and if you are in good standing, you can request a successor franchise agreement for one additional 10-year term. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the requirements for renewal or extension of the franchise term are outlined in Section 3.2 of the Franchise Agreement and Section 2.2 of the License Agreement. To renew, Brueggers Bagels requires a franchisee to provide written notice, sign a successor agreement, remodel their bakery, sign a general release, and pay one-half of the then-current franchise fee.
It is important to note that the Successor Franchise Agreement may contain terms that are materially different from the expiring Franchise Agreement, potentially including different fee requirements. This means that while a franchisee has the option to renew, the terms of the new agreement could be less favorable than the original.
For franchisees operating under a License Agreement, there is the possibility of two additional five-year terms, and one additional 10-year term for airport locations. However, the general requirements of written notice, signing a successor agreement, remodeling, signing a general release, and paying half the current franchise fee still apply. Prospective franchisees should carefully consider these requirements and the potential for changes in the franchise agreement when evaluating the long-term viability of a Brueggers Bagels franchise.