Under what conditions related to criminal charges can Brueggers Bagels require suspension of an individual from the franchised business?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2.4. If you or any owner or principal officer of Franchisee is convicted of or pleads guilty or no contest to a felony or other crime or offense that we believe is reasonably likely to have an adverse effect on the Bakery, the System, the Proprietary Marks, the goodwill associated therewith, or our interest therein.
Once an individual has been arrested for or formally charged with a serious criminal offense, we will have the right: (i) to require that the individual be suspended from any active role in the franchised business pending final disposition of the charges; and (ii) if the person(s) charged include the Operating Partner, to take over operation of the Bakery and to manage the Bakery pending final disposition of the charges.
If we exercise the right in clause (ii), we may charge a reasonable management fee for our services;
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, if a franchisee, owner, or principal officer is convicted of, pleads guilty to, or pleads no contest to a felony or other crime or offense that Brueggers Bagels believes is reasonably likely to negatively impact the bakery, the Brueggers Bagels system, the proprietary marks, or the associated goodwill, Brueggers Bagels has certain rights.
Specifically, once an individual has been arrested for or formally charged with a serious criminal offense, Brueggers Bagels has the right to require that the individual be suspended from any active role in the franchised business pending the final resolution of the charges. Additionally, if the person charged includes the Operating Partner, Brueggers Bagels can take over the operation of the bakery and manage it until the charges are resolved.
If Brueggers Bagels exercises its right to take over operations, it may charge a reasonable management fee for its services. This clause protects Brueggers Bagels' interests and brand reputation while ensuring the continued operation of the franchise during legal proceedings against key individuals.