Does Brueggers Bagels have the right to operate outlets at Non-Traditional Locations inside the Development Area?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, Brueggers Bagels and its affiliates retain the right to operate outlets at Non-Traditional Locations under the Bruegger's name or any other name, whether inside or outside of the Development Area. A Non-Traditional Location is defined as a facility where the primary function is not a Bakery business. Examples of Non-Traditional Locations include performing arts centers, arenas, stadiums, shopping malls, department stores, retail stores, wholesale clubs, grocery stores, supermarkets, casinos, amusement parks, fairgrounds, colleges or universities, factories, hospitals, penal institutions, military bases, airports, turnpikes, limited access highway rest stops, or other transportation facilities.

This means that even if a franchisee has a Development Agreement for a specific area, Brueggers Bagels can still open or franchise Non-Traditional Locations within that Development Area. This could potentially lead to increased competition for the franchisee, as these Non-Traditional Locations might draw customers away from the traditional Brueggers Bagels bakery.

For a prospective franchisee, this highlights the importance of understanding the scope of territorial protection offered by Brueggers Bagels. While a Development Agreement might grant certain exclusive rights for traditional bakeries, it does not prevent Brueggers Bagels from establishing Non-Traditional Locations within the same area. Franchisees should carefully consider the potential impact of these Non-Traditional Locations on their business and factor it into their financial projections and business plans.