What did the temporary restraining order prohibit Brueggers Bagels from doing?
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, a temporary restraining order was issued against them in a case filed by one of their franchisees, Colorado Bagel Company, LLC, on November 14, 2024. The legal action arose from the franchisee's continued operation after the franchise agreement expired, following Brueggers Bagels' termination of their at-will relationship. The franchisee's complaint included claims such as breach of contract, breach of implied covenant of good faith, promissory estoppel, and requests for declaratory and injunctive relief. They sought unspecified damages, preliminary and permanent injunctive relief, costs, and interest.
The court granted the franchisee's application for a temporary restraining order on November 21, 2024. This order specifically prohibited Brueggers Bagels from effecting the termination of the franchise agreement. Subsequently, on December 22, 2024, the court granted a preliminary injunction with the same prohibition.
This situation highlights the potential legal challenges that can arise between a franchisor like Brueggers Bagels and its franchisees, particularly concerning termination and post-term operation. The fact that the court intervened with both a temporary restraining order and a preliminary injunction suggests that the franchisee presented a reasonably strong case. For prospective franchisees, this underscores the importance of understanding the terms of the franchise agreement regarding termination and renewal, as well as the potential for legal disputes and their possible outcomes.