Under what circumstances might Brueggers Bagels require the spouse of an owner to execute the Confidentiality and Non-Competition Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If a business entity signs this Agreement, all persons who have a legal or beneficial ownership interest in that business entity must also execute this Agreement and if your owners reside in a community property state we may require their spouse to execute this Confidentiality and Non-Competition Agreement.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, if the owner of a Brueggers Bagels franchise resides in a community property state, Brueggers Bagels may require the owner's spouse to execute the Confidentiality and Non-Competition Agreement. This requirement is in place to protect Brueggers Bagels' confidential information and trade secrets.
Community property states generally consider assets acquired during a marriage to be owned equally by both spouses. Therefore, Brueggers Bagels likely requires the spouse's signature to ensure that the confidentiality and non-competition obligations are legally binding on both individuals, preventing potential loopholes or disputes related to shared assets and business interests. This is especially important because the spouse may indirectly benefit from the franchise and have access to confidential information.
This requirement is fairly common in franchising, particularly when dealing with business owners in community property states. It is a protective measure for the franchisor to safeguard their business interests and proprietary information. A prospective Brueggers Bagels franchisee should be aware of this requirement and prepared to have their spouse execute the agreement if they reside in a community property state.