What specific claims are made for promissory estoppel 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 the 2025 FDD, a Brueggers Bagels franchisee filed a lawsuit that includes a claim for promissory estoppel. The lawsuit, filed on November 14, 2024, by Colorado Bagel Company, LLC, also includes claims for breach of contract, breach of the implied covenant of good faith and fair dealing, declaratory relief, and injunctive relief. The franchisee is seeking an unspecified amount in damages, preliminary and permanent injunctive relief, costs, and interest.
The lawsuit is related to the franchisee's operation of its franchised store after the expiration of the franchise agreement and follows Brueggers Bagels' termination of the at-will relationship. The court granted the franchisee a temporary restraining order on November 21, 2024, and a preliminary injunction on December 22, 2024, which prohibited Brueggers Bagels from effecting the termination. As of the FDD publication date, the case was in the discovery phase.
Promissory estoppel is a legal claim based on a promise that the injured party relied on, even if there was no formal contract. In this case, the franchisee is likely claiming that Brueggers Bagels made promises that the franchisee relied upon, leading to damages after the termination of the franchise agreement. Because the amount of damages is unspecified, a prospective franchisee should seek clarification from Brueggers Bagels regarding the details and potential financial impact of this legal claim.