Which sections of the Brueggers Bagels Franchise Agreement cover the fees a franchisee must pay?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
8.5.7. That the transferor pays a transfer fee of Five Thousand Dollars ($5,000)
1.2. To exercise your development rights, you must execute a separate Bruegger's Franchise Agreement ("Franchise Agreement") with us for each Bakery to be developed, in accordance with Section 4.1 below.
The initial franchise fee payable for each Bakery is Thirty Thousand and No/100 Dollars ($30,000) ("Initial Franchise Fee").
A portion of the Development Fee paid in accordance with Section 3 below will be applied against the Initial Franchise Fee for each Bakery, until the Development Fee is exhausted, as follows: We will apply Ten Thousand Dollars ($10,000 of the Development Fee paid by you toward the Initial Franchise Fee for the first three Bakeries that you open under your Development Agreement.
Additional portions of the Development Fee will be applied to subsequent Initial Franchise Fees upon the signing of each subsequent Franchise Agreement at the rate of Five Thousand Dollars ($5,000) per Bakery, with the balance of the Initial Franchise Fee of Thirty Thousand Dollars ($30,000) payable when you sign each subsequent Franchise Agreement.
All amounts collected shall be deemed fully earned immediately upon receipt and shall be non-refundable.
If we exercise this right, we can charge a reasonable management fee for our services.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 29–31)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, several sections within Item 22, "Contracts," detail specific fees franchisees may encounter. Specifically, section 8.5.7 addresses transfer fees, stating that a transferor must pay $5,000. Additionally, section 1.2 discusses the initial franchise fee, which is $30,000 for each bakery. A portion of the development fee may be applied to this initial franchise fee.
For franchisees entering a Development Agreement, $10,000 of the development fee is applied towards the initial franchise fee for each of the first three bakeries. For subsequent bakeries, $5,000 of the development fee is applied, with the franchisee paying the remaining balance of the $30,000 initial franchise fee. All fees are deemed fully earned and non-refundable upon receipt by Brueggers Bagels.
Furthermore, if a franchisee or owner dies, becomes incapacitated, or enters bankruptcy, and Brueggers Bagels takes over operation of the bakery, they can charge a reasonable management fee for their services until the transfer is completed. Franchisees should carefully review these sections and related exhibits to fully understand all potential fees and payment terms associated with the Brueggers Bagels franchise.