Under what conditions does Brueggers Bagels have the option to assume the franchisee's rights under the lease?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, Brueggers Bagels must have the option, upon default, expiration, or termination of the applicable Franchise Agreement, and upon notice to the lessor, to assume all of the franchisee's rights under the lease. This includes any right to assign or sublease, and to require the landlord to terminate the franchisee's lease and enter into a new lease with Brueggers Bagels for the balance of the term of the lease upon the same terms and conditions.

This provision is a standard practice in franchising, designed to protect the Brueggers Bagels brand and ensure continuity of operations at the location. By securing the right to assume the lease, Brueggers Bagels can maintain control over the location even if the franchisee defaults, the franchise agreement expires, or the agreement is terminated. This is particularly important for maintaining brand consistency and preventing a competitor from taking over a prime location.

For a prospective franchisee, this clause highlights the importance of complying with the terms of the Franchise Agreement and the lease. Failure to do so could result in the loss of the franchise and the lease, with Brueggers Bagels stepping in to take over the location. It also underscores the need to carefully review the lease agreement to understand all of its terms and conditions, as these will be binding on Brueggers Bagels if they assume the lease. The franchisee should pay close attention to the conditions under which the lease can be terminated and the implications for their business.