Does Brueggers Bagels have a right of first refusal if a franchisee proposes to transfer their interest?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right, exercisable within thirty (30) days after receipt of a written request for our approval of a proposed transfer pursuant to this Section 15.2, to purchase the interest proposed to be transferred.
The request for approval of transfer must include a true and complete copy of the term sheet, letter of intent, proposed purchase agreement, assignment document, or any other document necessary to implement the transfer, and not be subject to financing or any other contingencies.
Our thirty (30) day period for determining whether or not to exercise our right of first refusal will not begin until the transferor has provided all information and documentation required hereunder in a form and substance satisfactory to us.
If we desire to exercise our right of first refusal, we will do so by providing written notice (the "Purchase Notice") to the transferor, as follows:
- 16.4.1. If the transfer is proposed to be made pursuant to a sale, we may purchase the interest proposed to be transferred on the same financial terms and conditions offered by the third party.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, Brueggers Bagels does have a right of first refusal if a franchisee proposes to transfer their interest. Specifically, Brueggers Bagels has the right to purchase the interest proposed to be transferred, exercisable within thirty days after receiving a written request for approval of a proposed transfer.
The request for transfer approval must include a complete copy of the term sheet, letter of intent, proposed purchase agreement, assignment document, or any other document necessary to implement the transfer. The request cannot be subject to financing or any other contingencies. Brueggers Bagels' thirty-day period to determine whether to exercise their right of first refusal will not begin until the transferor provides all required information and documentation in a satisfactory form and substance.
If Brueggers Bagels decides to exercise its right of first refusal, it will provide written notice to the transferor. If the transfer is proposed to be made pursuant to a sale, Brueggers Bagels may purchase the interest on the same financial terms and conditions offered by the third party.