Does Brueggers Bagels have the right to change the governing documents of a Marketing Co-op?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, Brueggers Bagels retains significant control over the Marketing Co-op. The document states that each Marketing Co-op must adopt an agreement governing its organization and operation, but this agreement is subject to Brueggers Bagels's approval. If the members of the Marketing Co-op do not sign an agreement within a reasonable time, the franchisee agrees to sign Brueggers Bagels's recommended form of Marketing Co-op Agreement.

More importantly, Brueggers Bagels reserves the right to change the form of organization, governing documents, and manner of operation of any Marketing Co-op. The franchisee and other members must implement any such change promptly after receiving notice from Brueggers Bagels. Furthermore, no changes in the bylaws or other governing documents of a Marketing Co-op can be made without Brueggers Bagels's prior written consent.

This level of control gives Brueggers Bagels the power to unilaterally alter the structure and rules of the Marketing Co-op, which could impact how marketing funds are spent and how the co-op operates. While this may ensure brand consistency and adherence to Brueggers Bagels's marketing strategies, it also reduces the franchisees' autonomy in making decisions about their local marketing efforts. A prospective franchisee should consider this dynamic and how it aligns with their expectations for input and control over marketing initiatives.