Can the service areas for Brueggers Bagels Off-Premises Programs differ from a franchisee's Protected Area?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Off-Premises Programs. You may request our permission to establish Off-Premises Programs either on your own or in conjunction with one or more outside vendors. Off-Premises Programs may be mandatory or optional for franchisees and may include online and telephone ordering features. If we establish a mandatory Off-Premises Program or you choose to participate in a voluntary program, you agree to pay the fees and costs associated with participation and to comply with all other rules and procedures that we specify for the program in the Manual or otherwise in writing. You may have to purchase equipment, including a delivery vehicle, in order to participate in an Off-Premises Program. We may define service areas for Off-Premises Programs that differ from your Protected Area. If multiple Bakeries are able to provide catering services in the same area, we may establish rules and policies to coordinate their activities and prevent customer confusion. Upon receipt of notice from us, you must stop directly soliciting catering customers and providing catering services in the adjacent area and turn over all customer information that you have acquired relating to that area.
As noted in Item 8, we currently use the "MonkeyMedia" online ordering platform for our catering program and online take-out orders. This platform selects a list of Bakeries to fulfill each order based on the address input by the customer. Customers have the ability to override the automatic selection and to send the order to a different Bakery, provided that the chosen Bakery is located within the distance limits that we set for catering services based on quality and safety parameters. We have the right to change to a different platform at any time.
Source: Item 12 — TERRITORY (FDD pages 42–45)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the service areas for Off-Premises Programs can indeed differ from a franchisee's Protected Area. Brueggers Bagels may define these service areas independently of the Protected Area granted to a franchisee. This means that while a franchisee might have a defined geographical area where Brueggers Bagels will not establish another similar bakery, the area from which the franchisee can solicit catering or off-premises orders might be different.
This has several implications for franchisees. Brueggers Bagels may establish rules and policies to coordinate activities and prevent customer confusion if multiple bakeries can provide catering services in the same area. If Brueggers Bagels notifies a franchisee, the franchisee must stop directly soliciting catering customers and providing catering services in the adjacent area and turn over all customer information acquired relating to that area. This could impact a franchisee's potential revenue and marketing strategies, as they might not have exclusive rights to customers within their Protected Area for off-premises services.
Brueggers Bagels uses the "MonkeyMedia" online ordering platform for its catering program and online take-out orders. This platform selects bakeries to fulfill orders based on the customer's address. Customers can override the automatic selection and send the order to a different bakery within the distance limits set by Brueggers Bagels for catering services, based on quality and safety parameters. Brueggers Bagels retains the right to change to a different platform at any time. Franchisees need to be aware that the online platform and its settings can influence which bakery gets the order, potentially creating competition even within the same brand.
Prospective franchisees should inquire about the specific criteria used to define service areas for Off-Premises Programs and how these areas might overlap or differ from their Protected Area. Understanding these details is crucial for assessing the potential market and competition for catering and delivery services.