Which section of the Brueggers Bagels Franchise Agreement Addendum discusses opening obligations?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If you qualify, we may offer you the opportunity to develop multiple Bakeries by signing a Development Agreement with us. Our current form of Development Agreement is in Exhibit B to this disclosure document. Under the Development Agreement, you will have the right and the obligation to develop a specified number of Bakeries (or Licensed Bakeries (defined below)) by certain deadlines. You will negotiate both the number of Bakeries and the deadlines with us, but the minimum commitment is two Bakeries. We can reduce the Development Area or terminate the Development Agreement entirely if you do not have the required number of Bakeries open and in operation by the agreed-upon deadlines.
You do not have to enter into any Franchise Agreements at the time you sign the Development Agreement. However, for each Bakery you develop under the Development Agreement, you must sign the form of Franchise Agreement that we are then offering to new franchisees, the terms and conditions of which may be substantially different from those in the Franchise Agreement in Exhibit A (including, for example, with respect to higher fees, shorter term, or other factors more burdensome to you).
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 29–31)
What This Means (2025 FDD)
Based on the 2025 Brueggers Bagels Franchise Disclosure Document, there is no Franchise Agreement Addendum. However, the document does refer to a Development Agreement in Exhibit B, which outlines the obligations for opening multiple Brueggers Bagels locations.
The Development Agreement specifies that a franchisee has the right and obligation to develop a certain number of Bakeries or Licensed Bakeries by agreed-upon deadlines. The minimum commitment is for two Bakeries. The franchisor, BFC, can reduce the Development Area or terminate the Development Agreement if the franchisee does not meet the agreed-upon opening deadlines.
It's important to note that signing a Development Agreement does not automatically bind the franchisee to the then-current Franchise Agreement. For each Bakery developed under the Development Agreement, the franchisee must sign the form of Franchise Agreement that BFC is offering to new franchisees at that time. The terms and conditions of this Franchise Agreement may differ substantially from those in Exhibit A and could include higher fees, a shorter term, or other factors that are more burdensome to the franchisee. Therefore, prospective franchisees should carefully consider the potential changes in terms before committing to a Development Agreement.