Are there any exceptions to the requirement to submit disputes with Brueggers Bagels to non-binding mediation?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or License Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration | Section 28.3 of the Franchise Agreement; Section 14.8 of the License Agreement | Before bringing an action in court, the parties must first submit the dispute to non-binding mediation (except for injunctive relief) in Colorado (subject to applicable state law). |
| v. Choice of forum | Section 28.2 of the Franchise Agreement; Section 14.7 of the License Agreement | Subject to state law, lawsuits must be filed in the jurisdiction where we have our principal place of business. As of the date of this disclosure document, our principal place of business is in Denver, Colorado. |
| w. Choice of law | Section 28.1 of the Franchise Agreement; Section 14.6 of the License Agreement | Subject to state law, the law of the state in which we have our principal place of business. As of the date of this disclosure document, our principal place of business is in Denver, Colorado. |
| Provision | Section in Development Agreement | Summary |
| --- | --- | --- |
| u. Dispute resolution by arbitration | Section 20.3 | Before bringing an action in court, the parties must first submit the dispute to non-binding mediation (except for injunctive relief) in Colorado (subject to applicable state law).as req |
| v. Choice of forum | Section 20.2 | Subject to state law, litigation must be filed where we have our principal place of business. As of the date of this disclosure document, our principal place of business is in Denver, Colorado. |
| w. Choice of Law | Section 20.1 | Subject to state law, the law of the state in which we have our principal place of business. As of the date of this disclosure document, our principal place of business is in Denver, Colorado. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, both the Franchise Agreement and the Development Agreement include a dispute resolution process that requires non-binding mediation before bringing an action in court. However, there is an exception for injunctive relief. This means that if Brueggers Bagels or the franchisee seeks a court order to stop someone from doing something (injunctive relief), they do not have to go through mediation first. This requirement to use non-binding mediation is subject to applicable state law and requires that the mediation take place in Colorado. As of the date of the disclosure document, Brueggers Bagels's principal place of business is in Denver, Colorado.
For a prospective Brueggers Bagels franchisee, this means that most disputes must first be submitted to non-binding mediation in Colorado before a lawsuit can be filed. Mediation involves a neutral third party who helps the parties try to reach a settlement. Because it is non-binding, either party can reject the mediator's suggestions and proceed to court, but it is a required first step. The exception for injunctive relief allows Brueggers Bagels or the franchisee to immediately seek a court order if there is a risk of immediate and irreparable harm.
The FDD also specifies that the choice of forum and choice of law for lawsuits are subject to state law and will be in the jurisdiction where Brueggers Bagels has its principal place of business, which is Denver, Colorado. This means that any lawsuit against Brueggers Bagels would likely need to be filed in Colorado and be governed by Colorado law, unless state law dictates otherwise. This could increase costs for a franchisee who does not live in Colorado.
It is important for a prospective franchisee to understand these dispute resolution procedures, as they can significantly impact how disputes with Brueggers Bagels are handled. Franchisees should consult with an attorney to understand the implications of these provisions and how they may be affected by state law.