Under what conditions can Brueggers Bagels assume the franchisee's rights under the lease?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We must have the option, upon default, expiration, or termination of the applicable Franchise Agreement, and upon notice to the lessor, to assume all of your rights under the lease, including any right to assign or sublease, and to require landlord to terminate your lease and enter into a new lease with us for the balance of the term of the lease upon the same terms and conditions.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, MANUALS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, Brueggers Bagels must have the option to assume all of the franchisee's rights under the lease. This includes the right to assign or sublease. This condition applies upon default, expiration, or termination of the Franchise Agreement. Brueggers Bagels must provide notice to the lessor to exercise this option.
Additionally, Brueggers Bagels can require the landlord to terminate the franchisee's lease and enter into a new lease with Brueggers Bagels. The new lease would be for the balance of the term of the original lease. The terms and conditions of the new lease must be the same as the original lease.
These stipulations protect Brueggers Bagels by ensuring they can maintain control of the location and continue operations, even if the franchisee defaults or the agreement is terminated. This is a fairly standard clause in franchise agreements, as it allows the franchisor to preserve the brand's presence and revenue stream. Prospective franchisees should carefully review the lease agreement to understand the conditions under which Brueggers Bagels can assume the lease and the implications for their business.