Before signing the Development Agreement, Franchise Agreement, or License Agreement for Brueggers Bagels, what document must be signed?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
Developer is developing one or more Bruegger's ("Bakeries) pursuant to a Development Agreement (the "Development Agreement") with BRUEGGER'S FRANCHISE CORPORATION ("BFC").
The Development Agreement requires persons with legal or beneficial ownership interests in Developer to be personally bound by Developer's obligations under the Development Agreement, including restrictions on competition, confidentiality obligations, restrictions on ownership changes, and dispute resolution provisions.
All capitalized terms used in this document have the same meaning as in the Development Agreement.
You own or intend to own a legal or beneficial ownership interest in Developer.
You acknowledge and agree that: (a) your execution of this Agreement is a condition of acquiring and holding your ownership interest in Developer; and (b) you have received good and valuable consideration for executing this Agreement.
BFC may enforce this Agreement directly against you.
If a business entity signs this Agreement, all persons who have a legal or beneficial ownership interest in that business entity must also execute this Agreement.
You may gain access to confidential information and trade secrets of BFC as a result of investing in Developer.
You agree that while you have a legal or beneficial ownership interest in Developer and thereafter you: (a) will not use the confidential information in any other business or capacity (such use being an unfair method of competition); (b) will exert best efforts to maintain the confidentiality of the confidential information; and (c) will not make unauthorized copies of any portion of the confidential information disclosed in written, electronic or other form.
If you cease to have an interest in Developer, you must deliver to BFC any such confidential information in your possession or control.
During the term of the Development Agreement and for as long as you have any legal or beneficial ownership interest in Developer, you agree that you will not, without BFC's consent (which consent may be withheld at BFC's discretion) directly or indirectly (such as through an affiliate or family members) own any legal or beneficial interest in, or render services or give advice in connection with: (a) any Competing Business located anywhere; or (b) any entity located anywhere that grants franchises or licenses interests to others to operate any Competing Business.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, individuals with legal or beneficial ownership interests in a Brueggers Bagels franchise must execute an agreement as a condition of acquiring and holding their ownership interest. This requirement applies to the Development Agreement, Franchise Agreement, and License Agreement. Brueggers Bagels mandates that all individuals with ownership interests be personally bound by the obligations outlined in these agreements, including clauses related to competition, confidentiality, ownership changes, and dispute resolution.
This agreement ensures that all owners are legally responsible for upholding the terms of the franchise agreement, regardless of whether the franchise is operated through a business entity. If a business entity is the franchisee, all individuals with legal or beneficial ownership in that entity must also sign the agreement. In community property states, Brueggers Bagels may also require the spouse of an owner to sign a Confidentiality and Non-Competition Agreement.
By signing this agreement, owners acknowledge that they may gain access to confidential information and trade secrets of Brueggers Bagels. They agree not to use this information in any other business or capacity, to maintain its confidentiality, and not to make unauthorized copies. This obligation extends both during their ownership and even after they cease to have an interest in the franchise, at which point they must return all confidential information to Brueggers Bagels.