Is Brueggers Bagels responsible for the franchisee's decision to sign a lease?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You make the following representations to us, and we rely on them in entering into the Agreement. If any statement is not correct, or if you are aware of exceptions to them, note them after #9 below.
You acknowledge that you will independently evaluate and investigate the proposed site(s) for each Bruegger's and the lease or purchase agreement for the site(s).
You acknowledge that you bear primary responsibility for selecting the site(s) and negotiating the terms and conditions of your lease(s), sublease(s) or purchase agreement(s) for the site(s).
You acknowledge that, although we will provide you with basic drawings and specifications for a Bruegger's restaurant, will specify certain furniture, fixtures and equipment, and will maintain certain rights of review and/or approval under our Development Agreement and/or Franchise Agreement with you, we have not made, and you have not received or relied upon any warranty concerning the Bruegger's restaurant(s) or the drawings, specifications, furniture, fixtures and equipment.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the franchisee is primarily responsible for evaluating and investigating potential sites and negotiating lease terms. Brueggers Bagels is not responsible for the franchisee's decision to sign a lease. The FDD states that the franchisee acknowledges they will independently evaluate and investigate proposed sites for each Brueggers Bagels restaurant and the lease or purchase agreement for the site.
Brueggers Bagels does provide basic drawings and specifications for a restaurant and specifies certain furniture, fixtures, and equipment. However, the franchisee acknowledges that they have not received or relied upon any warranty concerning the restaurants or the drawings, specifications, furniture, fixtures, and equipment from Brueggers Bagels. This means that while Brueggers Bagels offers support in terms of design and specifications, the final decision on site selection and lease negotiation rests with the franchisee.
This arrangement is typical in the franchise industry, where franchisees are considered independent business owners responsible for their location-related decisions. Prospective Brueggers Bagels franchisees should be prepared to conduct thorough due diligence on potential locations and understand the terms of their lease agreements, as the success of their business will depend significantly on these factors. Franchisees should seek advice from experienced real estate professionals and legal counsel to ensure they make informed decisions.