After termination or expiration of the Brueggers Bagels Development Agreement, what must I promptly pay?
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;
- 10.2.2. Permit access to, and examination of your books and records relating to the development of the Bakeries:
- 10.2.3. Protect our confidential information as provided in Section 7;
- 10.2.4. Not make any statements about us or any of our franchisees or affiliates that may constitute trade disparagement;
- 10.2.5. Comply with the post-term restrictions on competition in Section 11;
- 10.2.6. Indemnify us with respect to the period through the effective date of expiration or termination as provided in Section 14; and
- 10.2.7. Pay us all damages, costs, and expenses (including, but not limited to, reasonable attorneys' fees) we incur in obtaining injunctive, declaratory, or other relief to enforce this Section 10.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, upon termination or expiration 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.
Notably, the FDD states that you will not be entitled 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. Brueggers Bagels will retain all amounts paid to them under the terms of the Development Agreement.
In addition to the prompt payment of all sums owed, you must also comply with all obligations that expressly or by their nature survive termination of the Development Agreement. This includes the restrictions on competition outlined in Section 11.2 of the agreement. After termination or expiration, you will remain liable to Brueggers Bagels for certain obligations, including permitting access to and examination of your books and records relating to the development of the Bakeries, protecting their confidential information, and refraining from making disparaging statements about Brueggers Bagels or its franchisees or affiliates.