What rights does Brueggers Bagels retain regarding Bakeries outside the Development Area?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, Brueggers Bagels retains specific rights regarding bakeries outside a franchisee's development area. Brueggers Bagels maintains the right to own, acquire, establish, operate, and franchise or license others to operate Bakeries located outside of the Development Area. This means that even if a franchisee has exclusive development rights within a certain area, Brueggers Bagels can still open or franchise other locations outside of that area without restriction. This is a standard practice in franchising, allowing the franchisor to expand its brand presence in different markets.

Brueggers Bagels also retains the right to operate outlets at Non-Traditional Locations, whether inside or outside the Development Area, under the Bruegger's name or any other name. Non-Traditional Locations include facilities where the primary function is not a Bakery business, such as performing arts centers, arenas, stadiums, shopping malls, and other similar venues. This provision enables Brueggers Bagels to explore alternative avenues for expanding its brand, potentially reaching customers who may not typically visit a traditional Brueggers Bagels store.

Furthermore, Brueggers Bagels reserves the right to develop, manufacture, market, sell, and distribute packaged food products or any other goods or services under the Bruegger's mark through any channel of distribution other than a Bakery, including the Internet, supermarkets, and specialty food stores, anywhere in the world. They can also use the Bruegger's brand in other lines of business besides the operation of restaurants, anywhere in the world. These rights allow Brueggers Bagels to diversify its revenue streams and expand its brand presence beyond traditional bakery operations, which could benefit the brand as a whole but may not directly benefit individual franchisees.