Who is responsible for reimbursing costs incurred due to insufficient funds in a Brueggers Bagels franchisee's designated account?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, the franchisee is responsible for reimbursing any costs or expenses that Brueggers Bagels incurs as a result of the franchisee's designated account having insufficient funds.

Brueggers Bagels requires franchisees to designate a commercial bank account for the payment of weekly royalty fees and any other amounts owed to them. Brueggers Bagels will electronically debit this account each week for the required payments. Franchisees must authorize these debits and maintain a sufficient balance in the account to cover all amounts owed.

Failure to maintain a sufficient balance in the designated account can lead to default under the Franchise Agreement or License Agreement. In addition to being subject to default provisions, the franchisee will be responsible for reimbursing Brueggers Bagels for any costs or expenses they incur due to the insufficient funds.