Under what conditions can a Brueggers Bagels franchisee transfer their rights to an affiliated franchisee?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, a franchisee can transfer their rights if several conditions are met. One key condition is that if the transferee is an existing Brueggers Bagels developer or franchisee, they must not be in default under any existing agreements with Brueggers Bagels. Additionally, the existing franchisee must have a good record of customer service and compliance with Brueggers Bagels' operating standards. These stipulations ensure that any transfer to an affiliated franchisee maintains the brand's standards and reputation.

Whether the transferee is an existing franchisee or a new entity, they must demonstrate that they meet Brueggers Bagels' educational, managerial, and business standards. This includes possessing a good moral character, business reputation, and credit rating. The transferee must also show they have the aptitude and ability to conduct the business, which can be evidenced by prior related business experience. Furthermore, they need to prove they have adequate financial resources and capital to fulfill the obligations of the franchise agreement in a timely manner.

In addition to meeting these qualifications, the transferring franchisee must ensure that all accrued monetary obligations and other outstanding obligations to Brueggers Bagels and its affiliates are satisfied. The transferring franchisee must not be in default of any provision of the Franchise Agreement or any other agreement with Brueggers Bagels or its affiliates. The transferor must also execute a general release of any and all claims against Brueggers Bagels, its affiliates, and their respective officers, directors, shareholders, and employees.

Finally, the transferee (and certain owners if the transferee is a business entity) must enter into a written assignment, in a form satisfactory to Brueggers Bagels, assuming and agreeing to discharge all of the transferor's obligations under the Franchise Agreement. Alternatively, at Brueggers Bagels' option, the transferee may enter into the then-current form of Franchise Agreement. If the transferor guaranteed the obligations under the Franchise Agreement, the transferee must also guarantee the performance of all such obligations in writing in a form satisfactory to Brueggers Bagels. These conditions collectively ensure that any transfer maintains the integrity and financial stability of the Brueggers Bagels franchise system.