What restriction must be placed on the use of the premises in the lease agreement for a Brueggers Bagels franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The lease must restrict the use of the Premises solely to the operation of the Bakery at the time you sign the Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, MANUALS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the lease agreement for a Brueggers Bagels location must restrict the use of the premises solely to the operation of the bakery at the time the franchisee signs the Franchise Agreement. This means the lease must explicitly state that the space will only be used for running the Brueggers Bagels business.
This restriction ensures that the franchisee cannot use the premises for any other type of business or activity without the franchisor's consent. It protects the Brueggers Bagels brand and business model by preventing the franchisee from operating a different, potentially conflicting, business from the same location.
For a prospective franchisee, this means they need to ensure that the lease agreement they sign with the landlord includes this specific restriction. It is a non-negotiable term that Brueggers Bagels requires to protect its brand and system. Failing to comply with this requirement could lead to the franchisor rejecting the lease and potentially terminating the Franchise Agreement if a suitable site is not secured within nine months.