Under what conditions can a Brueggers Bagels franchisee transfer their interest in the agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
16.5.1. That all of your accrued monetary obligations and all other outstanding obligations to us and our affiliates have been satisfied;
16.5.2. That you are not in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between you and us or our affiliates;
16.5.3. That the transferor executes a general release, in a form satisfactory to us, of any and all claims against us, our affiliates and their respective past, present, and future officers, directors, shareholders, and employees, in their corporate and individual capacities;
16.5.4. That the transferee (and if the transferee is a corporation, partnership, or limited liability company, such owners of a beneficial interest in the transferee as we may request) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge all of your obligations under this Agreement; or, at our option, enter into our then current form of Franchise Agreement; and, if the transferor guaranteed your obligations under this Agreement, that the transferee guarantee the performance of all such obligations in writing in a form satisfactory to us;
16.5.5. If the transferee is an existing Bruegger's developer or franchisee, that the transferee is not in default under its agreements with us and has a good record of customer service and compliance with our operating standards;
16.5.6. That the transferee, whether or not an existing Bruegger's developer or franchisee, demonstrates to our satisfaction that he or she meets (or, if the transferee is a business entity, that its owners and management team meet) our educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the business contemplated hereunder (as may be evidenced by prior related business experience or otherwise); and has adequate financial resources and capital to fulfill your obligations hereunder in a timely manner; and
16.5.7. That the transferor pays a transfer fee equal to 50% of the initial franchise fee we are then charging for new Bakery franchises.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a franchisee can transfer their interest under certain conditions. The franchisee must satisfy all outstanding obligations to Brueggers Bagels and its affiliates, and not be in default of any agreement. The franchisee must also execute a general release of claims against Brueggers Bagels. The transferee must enter into a written assignment agreeing to discharge all obligations under the Franchise Agreement, or at Brueggers Bagels's option, enter into the current form of the Franchise Agreement. If the transferor guaranteed the obligations, the transferee must also provide a written guarantee.
If the transferee is an existing Brueggers Bagels developer or franchisee, they must not be in default under their agreements and have a good record of customer service and compliance with operating standards. The transferee, whether or not an existing franchisee, must meet Brueggers Bagels's standards for education, management, and business, possess good moral character, business reputation, and credit rating, and have the aptitude, ability, and adequate financial resources to conduct the business.
Additionally, the transferor must pay a transfer fee equal to 50% of the initial franchise fee that Brueggers Bagels is then charging for new Bakery franchises. In the event of death, incapacity, or bankruptcy, the executor, administrator, personal representative, or trustee must apply in writing within 3 months for consent to transfer the person's interest, subject to the same provisions. If the deceased or incapacitated person is the Operating Partner, Brueggers Bagels has the right to take over operation of the Bakery and charge a reasonable management fee until the transfer is completed.