Does Brueggers Bagels have the right to restrict the sourcing of current and future items?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 restrict the sourcing of both current and future items that franchisees are required to purchase. This means that Brueggers Bagels can mandate that franchisees buy certain products from specific, approved suppliers, which may include Brueggers Bagels itself or its affiliates.
This control over sourcing allows Brueggers Bagels to maintain quality standards and uniformity across all franchise locations. It also enables them to potentially profit from the sale of products to franchisees or receive rebates from approved suppliers. While franchisees can propose alternative suppliers, Brueggers Bagels is not obligated to approve them, and the approval process can take up to 90 days, including evaluation and testing.
For a prospective Brueggers Bagels franchisee, this means a significant portion of their purchases, estimated to be 65% to 80% of operating expenses, will be subject to these restrictions. While this ensures consistency and quality, it also limits the franchisee's ability to negotiate prices or source products independently. Franchisees must adhere to the approved supplier list and specifications to maintain compliance with the Brueggers Bagels system.
Brueggers Bagels can also revoke approval of particular vendors if they no longer meet the brand's standards, requiring franchisees to cease purchasing from them and potentially discard remaining inventory. This highlights the importance of understanding and adhering to Brueggers Bagels's sourcing requirements to avoid disruptions and maintain operational compliance.