Can Brueggers Bagels transfer or assign the Franchise Agreement to another entity?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
16.5.1. That all of your accrued monetary obligations and all other outstanding obligations to us and our affiliates have been satisfied;
16.5.2. That you are not in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you and us or our affiliates;
16.5.3. That the transferor executes a general release, in a form satisfactory to us, of any and all claims against us, our affiliates and their respective past, present, and future officers, directors, shareholders, and employees, in their corporate and individual capacities;
16.5.4. That the transferee (and if the transferee is a corporation, partnership, or limited liability company, such owners of a beneficial interest in the transferee as we may request) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge all of your obligations under this Agreement; or, at our option, enter into our then current form of Franchise Agreement; and, if the transferor guaranteed your obligations under this Agreement, that the transferee guarantee the performance of all such obligations in writing in a form satisfactory to us;
16.5.5. If the transferee is an existing Bruegger's developer or franchisee, that the transferee is not in default under its agreements with us and has a good record of customer service and compliance with our operating standards;
16.5.6. That the transferee, whether or not an existing Bruegger's developer or franchisee, demonstrates to our satisfaction that he or she meets (or, if the transferee is a business entity, that its owners and management team meet) our educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the business contemplated hereunder (as may be evidenced by prior related business experience or otherwise); and has adequate financial resources and capital to fulfill your obligations hereunder in a timely manner; and
16.5.7. That the transferor pays a transfer fee equal to 50% of the initial franchise fee we are then charging for new Bakery franchises.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, a franchisee can transfer their Franchise Agreement, but only if certain conditions are met.
First, all monetary and outstanding obligations to Brueggers Bagels and its affiliates must be satisfied. The franchisee must not be in default of any provision within the Franchise Agreement or any other agreement with Brueggers Bagels. The franchisee must also execute a general release of any claims against Brueggers Bagels and its affiliates. The person or entity to whom the franchise is being transferred (the transferee) must enter into a written agreement, in a form satisfactory to Brueggers Bagels, assuming all of the franchisee's obligations under the Franchise Agreement. Brueggers Bagels can also opt for the transferee to enter into the then-current form of the Franchise Agreement. If the franchisee had a guarantor, the transferee must also provide a guarantee.
Additionally, if the transferee is an existing Brueggers Bagels developer or franchisee, they cannot be in default under any existing agreements with Brueggers Bagels and must have a good record of customer service and compliance with operating standards. The transferee must also demonstrate that they meet Brueggers Bagels' standards for education, management, and business acumen, possess a good moral character, business reputation, and credit rating, and have adequate financial resources to fulfill the obligations under the Franchise Agreement. Finally, the franchisee must pay a transfer fee equal to 50% of the initial franchise fee that Brueggers Bagels is then charging for new Bakery franchises.