Which sections of the Brueggers Bagels Franchise Agreement are the guarantors individually bound by, specifically regarding trademarks, confidentiality, transfers, and competition?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, individuals who act as guarantors for a Brueggers Bagels franchise are bound by specific sections of the Franchise Agreement. These sections cover critical aspects of the franchise operation.

Specifically, guarantors are individually bound by Section 10, which generally pertains to trademarks, ensuring that the Brueggers Bagels brand and associated marks are protected. They are also bound by Section 12, which covers confidentiality, obligating them to maintain the secrecy of proprietary information related to the Brueggers Bagels system. Section 16, concerning transfers, also binds the guarantors, likely ensuring that any transfer of the franchise adheres to the franchisor's requirements. Finally, Section 19, which generally addresses covenants against competition, also applies to the guarantors, preventing them from engaging in activities that would compete with the Brueggers Bagels franchise.

This comprehensive obligation ensures that the franchisor, Brueggers Bagels, has recourse not only to the franchisee entity but also to the individual guarantors for key aspects of compliance and protection of the brand and system. The guarantors also acknowledge that the guarantee does not grant them any rights under the agreement, such as the right to use Brueggers Bagels' trademarks.

Prospective franchisees and their guarantors should carefully review these sections of the Franchise Agreement to fully understand the scope of their obligations and potential liabilities. It is also important to note that these obligations remain in effect even after the termination or expiration of the Franchise Agreement, particularly for liabilities arising before the termination date and covenants that extend beyond the agreement's term.