What are the requirements for a Brueggers Bagels franchisee to renew their franchise agreement?
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. Under the License Agreement: two additional five year terms, and one additional 10-year term for airport locations. |
| c. Requirements for you to renew or extend | Section 3.2 of the Franchise Agreement; Section 2.2 of the License Agreement | Written notice, sign successor agreement, remodel, sign general release, and pay one-half of the then-current franchise fee. |
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 depend on whether the franchisee has a Franchise Agreement or a License Agreement. For a Franchise Agreement, Brueggers Bagels requires written notice from the franchisee indicating their intent to renew. The franchisee must sign the successor agreement, remodel their bakery, sign a general release, and pay one-half of the then-current franchise fee. The Successor Franchise Agreement may contain terms that are materially different from the expiring Franchise Agreement, such as different fee requirements. 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. Franchisees are eligible for one additional 10-year term if Brueggers Bagels is still franchising and has not withdrawn from the geographic market of the Bakery, and if the franchisee is in good standing.
For a License Agreement, Brueggers Bagels requires written notice from the franchisee indicating their intent to renew. The franchisee must sign the successor agreement, remodel their bakery, sign a general release, and pay one-half of the then-current franchise fee. The Successor Franchise Agreement may contain terms that are materially different from the expiring Franchise Agreement, such as different fee requirements. The term under the License Agreement is five years from the effective date of the agreement, and 10 years for all airport locations. Licensees are eligible for two additional five year terms, and one additional 10-year term for airport locations if Brueggers Bagels is still franchising and has not withdrawn from the geographic market of the Bakery, and if the franchisee is in good standing.
It is important for prospective franchisees to understand that the terms of the Successor Franchise Agreement may differ significantly from the original agreement. This could include changes to fees, operational requirements, or other key aspects of the franchise relationship. Franchisees should carefully review the Successor Franchise Agreement and seek legal counsel to understand the implications of these changes before committing to a renewal. This is a fairly standard renewal process in the franchise industry, but the specific terms can vary widely from brand to brand.