Can the terms and conditions of the Franchise Agreement for bakeries developed under the Development Agreement differ from those in Exhibit A for Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not have to enter into any Franchise Agreements at the time you sign the Development Agreement. However, for each Bakery you develop under the Development Agreement, you must sign the form of Franchise Agreement that we are then offering to new franchisees, the terms and conditions of which may be substantially different from those in the Franchise Agreement in Exhibit A (including, for example, with respect to higher fees, shorter term, or other factors more burdensome to you).
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 5–10)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the terms and conditions for Franchise Agreements for bakeries developed under a Development Agreement can indeed differ substantially from the standard Franchise Agreement presented in Exhibit A. Specifically, the document states that for each bakery developed under the Development Agreement, franchisees must sign the form of Franchise Agreement that Brueggers Bagels is offering to new franchisees at that time.
This is significant for prospective franchisees because the terms and conditions in the current Franchise Agreement may not be the same when it's time to sign individual agreements for each bakery under the Development Agreement. These differences could include higher fees, a shorter term, or other factors that may be more burdensome. Therefore, franchisees need to be aware that the initial terms they review in Exhibit A are subject to change.
This flexibility allows Brueggers Bagels to adapt its franchise terms to changing market conditions or business strategies. However, it also introduces an element of uncertainty for developers, as the financial and operational requirements could shift between the time they sign the Development Agreement and when they execute individual Franchise Agreements for each location. Prospective franchisees should carefully consider this potential for change and discuss it thoroughly with Brueggers Bagels before committing to a Development Agreement.