What is the timeframe for effecting an approved transfer of a Brueggers Bagels franchise following death or declaration of mental incapacity?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or any Owner dies, becomes incapacitated, or enters bankruptcy proceedings, that person's executor, administrator, personal representative, or trustee must apply to us in writing within 3 months after the event (death, declaration of incapacity, or filing of a bankruptcy petition) for consent to transfer the person's interest.
The transfer will be subject to the provisions of this Section 16, as applicable.
In addition, if the deceased or incapacitated person is the Lead Operator, we will have the right (but no obligation) to take over operation of the Bakery upon giving notice to the executor, administrator, personal representative, or trustee and to manage the Bakery until the transfer is completed.
If we exercise this right, we can charge a reasonable management fee for our services.
For purposes of this Section, "incapacity" means any physical or mental infirmity that will prevent the person from performing his or her obligations under this Agreement (i) for a period of 30 or more consecutive days, or (ii) for 60 or more total days during a calendar year.
In the case of transfer by bequest or by intestate succession, if the heirs or beneficiaries are unable to meet the conditions of Section 16.5, the executor may transfer the decedent's interest to another successor that we have approved, subject to all of the terms and conditions for transfers contained in this Agreement.
If an interest is not disposed of under this Section 16.6 within one (1) year after the date of death or appointment of a personal representative or trustee, we can terminate this Agreement under Section 16.2.8.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, if a franchisee or any owner dies, becomes incapacitated, or enters bankruptcy proceedings, their executor, administrator, personal representative, or trustee must apply in writing for consent to transfer the person's interest within 3 months of the event.
The transfer itself must be completed within one year after the date of death or appointment of a personal representative or trustee. If the interest is not transferred within this one-year timeframe, Brueggers Bagels has the right to terminate the Franchise Agreement.
This requirement ensures that the Brueggers Bagels franchise continues to operate under approved management and maintains brand standards even in unforeseen circumstances. The franchisor also has the option to take over operations of the bakery until the transfer is completed, charging a reasonable management fee for their services. This protects the brand and ensures continuity of the business.