Under what conditions does the Brueggers Bagels franchise agreement take effect?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You make the following representations to us, and we rely on them in entering into the Agreement. If any statement is not correct, or if you are aware of exceptions to them, note them after #9 below.
You recognize and understand that business risks which exist in connection with the ownership, development and operation of any business make the success or failure of the Bakery franchise subject to many variables, including your skills and abilities, competition, interest rates, the economy, inflation, location(s), operation, labor and supply costs, lease terms and costs and the marketplace.
Further, you understand that the economic and business factors that exist at the time you open your franchise may change.
You acknowledge that you have conducted an independent investigation of the business venture contemplated by the Agreement and recognize that the success of the venture involves substantial business risk and will be dependent primarily on your ability as an independent business person.
You hereby acknowledge your willingness to undertake these business risks.
You acknowledge that you received our Franchise Disclosure Document ("FDD") at least 14 days prior to the date you executed the Agreement or paid us any money for the franchise.
You acknowledge that you have received, had the opportunity to personally read and review, and understand the FDD, Agreement and attachments.
You acknowledge that we have permitted you ample time and opportunity to consult with advisors of your own choosing about the potential benefits and risks associated with operating a Bruegger's franchise and entering into an Agreement.
You acknowledge that you will independently evaluate and investigate the proposed site(s) for each Bruegger's and the lease or purchase agreement for the site(s).
You acknowledge that you bear primary responsibility for selecting the site(s) and negotiating the terms and conditions of your lease(s), sublease(s) or purchase agreement(s) for the site(s).
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, the franchise agreement takes effect when certain representations made by the franchisee are accurate and relied upon by Brueggers Bagels. Specifically, Brueggers Bagels relies on the franchisee's acknowledgment and understanding of the business risks associated with operating a Brueggers Bagels restaurant. These risks include factors like the franchisee's skills, competition, interest rates, economic conditions, and location-specific considerations. The agreement also hinges on the franchisee's confirmation that they've conducted an independent investigation of the business venture and are willing to assume the inherent risks.
Furthermore, the Brueggers Bagels franchise agreement is contingent on the franchisee's acknowledgment of having received the FDD at least 14 days before signing the agreement or paying any fees. The franchisee must also confirm that they have had ample time and opportunity to consult with advisors regarding the potential benefits and risks of the franchise. This 14-day review period is a standard practice in franchising, designed to protect prospective franchisees by ensuring they have sufficient time to evaluate the opportunity and seek professional advice.
Finally, the agreement's effectiveness depends on the franchisee's acknowledgment that they will independently evaluate and investigate potential sites for the Brueggers Bagels restaurant and negotiate the lease or purchase agreement for the chosen site. Brueggers Bagels provides basic drawings and specifications, but the franchisee bears the primary responsibility for site selection and lease negotiations. This highlights the importance of due diligence on the franchisee's part in assessing the suitability of the location for their Brueggers Bagels franchise.