After termination of the Brueggers Bagels Development Agreement, what must I promptly pay to the franchisor and its affiliates?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must not use any designation of origin or description or representation which, in our sole discretion, falsely suggests or represents an association or connection with us.
- 10.1.6. Promptly pay all sums owing to us and our affiliates. In the event of termination for your default, the sums will include all damages, costs, and expenses incurred by us as a result of the default, including, but not limited to, reasonable attorneys' fees. You will have no right to a refund of all or any part of the Development Fee, regardless of whether you entered into a Franchise Agreement prior to such termination. We will retain all amounts paid to us pursuant to the terms of this Agreement.
- 10.1.7. Comply with all obligations that expressly or by their nature survive termination of this Agreement, including the restrictions on competition contained in Section 11.2. No right or remedy herein conferred upon or reserved to us is exclusive of any other right or remedy provided or permitted to us by law or in equity.
- 10.2. Continuing Obligations. After termination, or expiration, of this Agreement under any circumstances, you will remain liable to us for certain obligations. Among other things, you must:
- 10.2.1. Promptly pay all sums owing to us and our affiliates;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, upon termination of the Development Agreement, you must promptly pay all sums owing to Brueggers Bagels and its affiliates. If the termination is due to your default, these sums will include all damages, costs, and expenses incurred by Brueggers Bagels as a result of the default. This includes, but is not limited to, reasonable attorneys' fees.
Furthermore, the FDD states that you will not be entitled to a refund of any part of the Development Fee, regardless of whether you entered into a Franchise Agreement before the termination. Brueggers Bagels will retain all amounts paid under the terms of the Development Agreement.
This means that if you default on your Brueggers Bagels Development Agreement, you could face significant financial consequences beyond the loss of your initial Development Fee. You would be responsible for covering Brueggers Bagels' costs associated with your default, potentially including legal fees and other expenses. This is a standard clause in many franchise agreements, designed to protect the franchisor from losses incurred due to a franchisee's failure to meet their obligations.