Under what conditions would the disclosure in Item 3, Additional Disclosure, regarding Brueggers Bagels and national securities associations or exchanges, need to be updated?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, Item 3 pertains to whether Brueggers Bagels or any individuals listed in Item 2 have been subject to certain legal or regulatory actions. Specifically, it addresses if they are subject to any currently effective order from a national securities association or national securities exchange that suspends or expels them from membership.

This disclosure would need to be updated if Brueggers Bagels or any person listed in Item 2 becomes subject to a currently effective order of any national securities association or national securities exchange (as defined in the Securities and Exchange Act of 1934) that suspends or expels such person from membership in such association or exchange. This means that if any of the covered parties are sanctioned by a regulatory body like the Financial Industry Regulatory Authority (FINRA) or a stock exchange such as the New York Stock Exchange (NYSE), the disclosure must be updated to reflect this new order.

For a prospective franchisee, this indicates that Brueggers Bagels is obligated to disclose any relevant legal or regulatory issues involving its leadership. It is essential to review Item 3 carefully to understand the background of the franchisor and its key personnel. Any updates to this item would signal a change in the legal or regulatory standing of the individuals or the company itself, which could impact the stability and reputation of the franchise system.