What specific claims are made for breach of contract against Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Colorado Bagel Company, LLC v. Bruegger's Franchise Corporation, Case No. 2024CV33517 (D.Ct. Denver, CO). The plaintiff in this case, a Bruegger's franchisee, filed this lawsuit on November 14, 2024. The case involves the franchisee's operation of its franchised store after the expiration of the franchise agreement, and follows our termination of the at-will relationship. The plaintiff's complaint includes claims for breach of contract, breach of the implied covenant of good faith and fair dealing, promissory estoppel, declaratory relief and injunctive relief, and seeks damages in an unspecified amount, preliminary and permanent injunctive relief, costs, and interest. We answered the complaint, denying the material allegations, and asserted counterclaims against the plaintiff and its members. On November 21, 2024, the court granted the plaintiff's application for a temporary restraining order, prohibiting us from effecting the termination. On December 22, 2024, the court granted the plaintiff's motion for a preliminary injunction, prohibiting us from effecting the termination. The case is currently in the discovery phase.
Source: Item 3 — LITIGATION (FDD page 12)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, one specific claim for breach of contract is mentioned in the litigation section. A Brueggers Bagels franchisee, Colorado Bagel Company, LLC, filed a lawsuit against Bruegger's Franchise Corporation on November 14, 2024, which includes a claim for breach of contract.
The lawsuit arose from the franchisee's operation of its franchised store after the franchise agreement expired, following the termination of their at-will relationship with Brueggers Bagels. In addition to the breach of contract claim, the franchisee's complaint includes claims for breach of the implied covenant of good faith and fair dealing, promissory estoppel, declaratory relief, and injunctive relief. The franchisee is seeking unspecified damages, preliminary and permanent injunctive relief, costs, and interest.
Brueggers Bagels has denied the allegations and asserted counterclaims against the plaintiff and its members. The court initially granted a temporary restraining order and later a preliminary injunction, both prohibiting Brueggers Bagels from effecting the termination. As of the document's publication, the case is in the discovery phase. Prospective franchisees should be aware of ongoing litigation and its potential impact, and further inquire about the details and possible outcomes of this case.