Under what circumstances is a 'Release' executed by the franchisee and guarantors as a condition for Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| RELEASE ("Release") is executed on THIS GENERAL | by | |
|---|---|---|
| ("Franchisee") and | (collectively, "Guarantors") as a condition of the (1) | |
| transfer of the Bruegger's Development Agreement dated | ("Development Agreement") between Franchisee and Bruegger's Franchise Corporation. | |
| ("Franchisor"); (2) transfer of the Bruegger's Franchise Agreement dated | Agreement") between Franchisee and Franchisor; or (3) execution of a Successor Franchise | ("Franchise |
| Agreement by Franchisee and Franchisor. |
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a Release is executed by the franchisee and any guarantors under specific conditions related to the franchise agreements. This Release is required for (1) the transfer of the Bruegger's Development Agreement, (2) the transfer of the Bruegger's Franchise Agreement, or (3) the execution of a Successor Franchise Agreement.
In practical terms, this means that if a franchisee wants to sell their development rights, sell their franchise, or enter into a new franchise agreement after the initial term, they, along with any guarantors, must sign a release. This release essentially discharges Brueggers Bagels from any claims, debts, liabilities, demands, obligations, actions, and causes of action related to the Franchise Agreement, the Development Agreement, or the relationship between the parties. The release covers both known and unknown claims, unless prohibited by applicable law, but excludes claims based on any representation made by Brueggers Bagels in the most recent Franchise Disclosure Document.
For franchisees in California, the release includes a specific waiver of rights under California Civil Code Section 1542, acknowledging that the agreement is intended to include all claims, even those not known or suspected at the time of execution. However, this general release does not apply to claims arising under the Washington Franchise Investment Protection Act for franchisees in Washington, or any liability under the Maryland Franchise Registration and Disclosure Law for franchisees in Maryland.
Prospective franchisees should be aware of the broad scope of this release and understand that they are giving up potential legal claims against Brueggers Bagels, except for specific exclusions. It is advisable to consult with an attorney to fully understand the implications of signing such a release, especially in light of the laws of their specific state.