Under what condition can BEI stop Brueggers Bagels from using the Proprietary Marks?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ur Bakeries. By trademark, we mean trade names, trademarks, service marks and logos we use to identify Bakeries and the products sold in them.
Our affiliate, BEI (Bruegger's Enterprises, Inc.) is the owner of the trademarks, service marks, and logos used in the System (the "Proprietary Marks"). BEI has granted us a license to use the Proprietary Marks and the Works (as defined in Item 14) and to license others to use them. BEI has registered the principal marks on the Principal Register of the United States Patent and Trademark Office, as follows:
| Trademark or Service Mark | Registration Date | Registration Number | |---|---|---| | Bruegger’s | November 11, 1988 | 1513741 | | | August 31, 1993 | 1790827 | | | August 31, 1993 | 1790828 | | Trademark or Service Mark | Registration Date | Registration Number | |---|---|---| | Bruegger’s | September 9, 1993 | 1792050 | | | April 22, 1997 | 2054479 | | BagelNet | April 22, 1997 | 2054916 | | | December 2, 2014 | 4648272 | Registrations for the marks listed above have been renewed, as applicable, and all affidavits required before the date of this disclosure document for the marks listed above have been filed.
Source: Item 13 — TRADEMARKS (FDD pages 45–47)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, Bruegger's Enterprises, Inc. (BEI), which owns the trademarks, service marks, and logos used in the Brueggers Bagels system (referred to as the "Proprietary Marks"), has the right to stop Brueggers Bagels from using these marks under specific circumstances. BEI grants Brueggers Bagels a license to use these Proprietary Marks, and this license remains effective as long as Brueggers Bagels has a Franchise Agreement in effect. However, BEI can terminate Brueggers Bagels's right to use the Proprietary Marks if Brueggers Bagels fails to maintain the required standards for the products or services sold or provided under these marks.
This condition is significant for prospective Brueggers Bagels franchisees because it highlights the importance of adhering to the franchisor's quality standards. Failure to maintain these standards could result in the loss of the right to operate under the Brueggers Bagels brand name, which would severely impact the franchisee's business. The FDD also states that BEI can license others to use the Proprietary Marks for any business activities allowed under the contract provisions described in Item 12, but otherwise, the license from BEI does not limit Brueggers Bagels's right to use, or to license franchisees to use, the Proprietary Marks.
Furthermore, the document emphasizes that Brueggers Bagels will defend franchisees against infringement claims arising from their proper use of the Proprietary Marks, provided that the franchisee's use complies with the Franchise Agreement. However, if the infringement claim arises from the franchisee's improper use of the Proprietary Marks or a violation of the Franchise Agreement, the franchisee will be responsible for the costs. This underscores the need for franchisees to strictly adhere to the franchisor's guidelines and standards in using the Proprietary Marks to avoid potential legal issues and financial liabilities.