What transfer fee must the transferor pay to Brueggers Bagels when transferring a franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
8.5.7. That the transferor pays a transfer fee of Five Thousand Dollars ($5,000)
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a transferor must pay a transfer fee to Brueggers Bagels when transferring a franchise. The amount of this fee depends on which section of the agreement applies. According to one section, the transferor pays a fee equal to 50% of the initial franchise fee Brueggers Bagels is then charging for new Bakery franchises. According to another section, the transferor pays a transfer fee of $5,000.
It is important to note that the FDD contains two different transfer fees. The specific fee that applies may depend on the circumstances of the transfer, such as the timing or specific agreement in place.
Prospective franchisees should clarify with Brueggers Bagels which transfer fee applies in different scenarios to fully understand the potential costs associated with transferring a franchise.