Does Brueggers Bagels have the right to designate a single supplier for certain items?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
whether or not the product or service is presently mentioned in this Item. We have the right to designate only one supplier (which may be us or our affiliates) for certain items (such as distribution of food products, soft drinks, etc.) in order to take advantage of marketplace efficiencies.
If we do not require you to use a designated source or approved supplier for a particular item, you may purchase the item from any vendor you choose, so long as your purchases conform to our standards and specifications. We have the right to restrict the sourcing of current and future items. We and our affiliates may earn a profit on products and services sold to you and other Bruegger's franchisees, and may receive rebates or other consideration from unaffiliated vendors with respect to their sales of products or services to you or other Bruegger's franchisees, whether or not the product or service presently mentioned in this Item.
Proprietary Food Items. Certain of the food items in Bruegger's Bakeries are proprietary (such as dough and cream cheese). We will have the right to periodically introduce additional or new proprietary items. Proprietary items are considered integral components of a Bruegger's franchise and are inextricably interrelated with the Proprietary Marks and the System. The proprietary items that are offered and sold in Bakeries are manufactured in accordance with the secret blends, standards, and specifications that we or our affiliates own. In order to maintain the high standards of quality, taste, and uniformity associated with proprietary items sold at all Bakeries in the System, you must purchase proprietary items only from us, our affiliate, our parent company, or our designees, and you may not offer or sell any proprietary item that has not been purchased from us, our affiliate, our parent company, or our designated supplier at or from the Franchised Bakery.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, Brueggers Bagels retains the right to designate a single supplier for certain items. This means that Brueggers Bagels can mandate that franchisees purchase specific products, such as food products or soft drinks, exclusively from a supplier they choose, which may include Brueggers Bagels itself or its affiliates. This is done to leverage marketplace efficiencies and maintain uniformity across the franchise system.
This requirement extends to food and beverage products, ingredients, packaging materials, menus, signs, technology suite, equipment, furniture, smallwares, décor items, and other products and services. These must be purchased according to Brueggers Bagels's specifications and quality standards. If Brueggers Bagels does not mandate a specific supplier, franchisees can choose their own vendors, provided they meet the franchisor's standards and specifications. Brueggers Bagels can also restrict the sourcing of current and future items.
For a prospective franchisee, this means a significant portion of their purchases, estimated at 65% to 80% of total operating purchases and leases, will be subject to these restrictions. While franchisees can propose alternative suppliers, Brueggers Bagels has the right to approve or disapprove them. Brueggers Bagels estimates that 90% to 100% of the total purchases and leases in establishing a Bakery will be subject to these restrictions. This system allows Brueggers Bagels to maintain quality control and potentially benefit financially through profits, rebates, or other considerations from the designated suppliers. Franchisees should be aware of these purchasing restrictions and their potential impact on costs and operational flexibility.