Under what conditions can a Brueggers Bagels franchisee request a successor franchise agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
| Provision | Section in Franchise Agreement or License Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 3.1 of the Franchise Agreement; Section 2.1 of the License Agreement; Paragraph 2 of Franchise Agreement Addendum | The term under the Franchise Agreement is the earlier of 10 years from the date the Bakery opens, or 11 years from the effective date of the agreement; the term under the License Agreement is five years from the effective date of the agreement, and 10 years for all airport locations. |
| b. Renewal or extension of the term | Section 3.2 of the Franchise Agreement; Section 2.2 of the License Agreement | Provided we are still franchising and have not made a decision to withdraw from the geographic market of the Bakery, and if you are in good standing, you can request a successor franchise agreement for one additional 10-year term. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a franchisee can request a successor franchise agreement under specific conditions. For a standard franchise agreement, the franchisee must be in good standing. Additionally, Brueggers Bagels must still be franchising and not have decided to withdraw from the geographic market of the bakery. If these conditions are met, a franchisee can request a successor franchise agreement for one additional 10-year term.
For a License Agreement, a franchisee can request two additional five-year terms, except for airport locations, which are eligible for one additional 10-year term. To successfully renew or extend the franchise term, the franchisee must provide written notice, sign a successor agreement, remodel the premises, sign a general release, and pay one-half of the then-current franchise fee.
It is important to note that the Successor Franchise Agreement may contain terms that are materially different from the expiring Franchise Agreement, including different fee requirements. This means that while a franchisee may be eligible for renewal, the terms of the new agreement could be less favorable than the original. Franchisees should carefully review the terms of the successor agreement to understand any changes in obligations or fees.