Under what conditions can a Brueggers Bagels licensee terminate the License Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD 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. Under the License Agreement: two additional five year terms, and one additional 10-year term for airport locations. |
| c. Requirements for you to renew or extend | Section 3.2 of the Franchise Agreement; Section 2.2 of the License Agreement | Written notice, sign successor agreement, remodel, sign general release, and pay one-half of the then-current franchise fee. The Successor Franchise Agreement may contain terms that are materially different from your expiring Franchise Agreement, such as different fee requirements. |
| d. Termination by | Franchise Agreement: Not | Not applicable (subject to applicable state |
| you | applicable | law) |
| License Agreement: Section 10.2(e) | If you are in compliance with the agreement and upon 60 days’ notice to us the lease or concession agreement with your host facility is terminated, expires or is not renewed (subject to applicable state law). |
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 licensee can terminate the License Agreement under specific conditions. The licensee can terminate the agreement if they are in compliance with the agreement and provide 60 days' notice to Brueggers Bagels. This termination option is available if the lease or concession agreement with the host facility is terminated, expires, or is not renewed. This termination is subject to applicable state law.
This provision offers a degree of protection for licensees whose businesses are dependent on a location controlled by a third party. For example, if a Brueggers Bagels is located in an airport, and the airport authority decides not to renew the lease, the licensee has the right to terminate their agreement with Brueggers Bagels, provided they are in compliance with all other terms of the agreement. This prevents the licensee from being held to the agreement when they no longer have a viable location.
It is important to note that this termination right is conditional. The licensee must be in full compliance with the License Agreement at the time of termination. Additionally, the licensee must provide Brueggers Bagels with a 60-day notice. This allows Brueggers Bagels time to find a replacement or make other arrangements. Prospective licensees should carefully review Section 10.2(e) of the License Agreement to fully understand their rights and obligations regarding termination.