During the term of the Brueggers Bagels franchise, what activities are prohibited under the non-competition covenant?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| q. Non-competition | Section 11.1 | No involvement in Competing Business. |
| covenants during | ||
| the term of the |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, during the term of the franchise agreement, franchisees are prohibited from involvement in any "Competing Business." The specifics of what constitutes a "Competing Business" are not defined in this section, but it is defined in Section 11.1 of the Development Agreement.
This non-compete clause is a standard practice in franchising. It aims to protect the Brueggers Bagels brand and market share by preventing franchisees from operating or being involved in similar businesses that could draw customers away from the franchise. The restriction applies throughout the duration of the franchise agreement.
Prospective franchisees should carefully review Section 11.1 of the Development Agreement to fully understand the scope of activities that are considered competitive and therefore prohibited. It is important to understand what constitutes a "Competing Business" to avoid any unintentional breach of contract during the franchise term. Franchisees should seek legal counsel to clarify any ambiguities or concerns regarding the non-compete clause before signing the agreement.