Under what conditions can the Brueggers Bagels System be modified, and what is the licensee's obligation regarding these modifications?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
The distinguishing characteristics of the System include bagels, baked goods, cream cheese products and other food and beverage items prepared in accordance with secret and proprietary recipes and manufacturing processes owned by us and our affiliates; distinctive exterior and interior Bakery design, décor, color scheme, fixtures, and furnishings; standards and specifications for ingredients, food preparation, equipment, supplies, and Bakery operations, as well as uniform standards, specifications, methods, policies and procedures for Bakery operations, proprietary inventory and management control, training and assistance; and advertising and promotional programs; all of which may be changed, improved, and further developed by us and our affiliates from time to time.
- (e) Licensee shall maintain the condition and appearance of the premises of the Bakery consistent with Licensor's Standards.
Subject to the approval of the Lessor, Licensee shall effect such maintenance of the Bakery as is from time to time reasonably required to maintain or improve the appearance and efficient operation of the Bakery including but not limited to replacement, of worn out or obsolete fixtures and signs, repair of the exterior and interior of the premises of the Bakery and purchasing and installation of new or modified equipment.
If at any time in Licensor's judgment the general state of repair or the appearance of the premises of the Bakery or its equipment, fixtures, signs or décor does not meet Licensor's Standards, Licensor shall so notify Licensee, specifying the action to be taken by Licensee to correct such deficiency.
If Licensee fails or refuses to initiate such maintenance within ten (10) days after receipt of such notice, and thereafter also fails or refuses to continue a bona fide program to complete any required maintenance, such failure or refusal shall be considered a material default and Licensor may terminate this Agreement as herein provided.
Licensee's
obligation to initiate and continue any required maintenance shall be suspended during any period in which such maintenance is impractical due to Force Majeure.
Upon any termination of the Lease or of Tenant's right to possession of the Premises (even if the Lease is not terminated), Franchisor, within thirty (30) days after receipt of Landlord's written request and in accordance with the provisions of this paragraph, will make all modifications to the Premises which Franchisor deems reasonably necessary to protect or remove the System or the Proprietary Marks from the Premises.
Promptly following the completion of any modifications to the Premises pursuant to this paragraph, Tenant, at its expense, shall repair any damage caused to the Premises in connection with the modifications and leave the Premises in good repair and condition.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the Brueggers Bagels System, which includes proprietary recipes, bakery design, standards for ingredients, and operational procedures, can be changed, improved, and further developed by Brueggers Bagels and its affiliates from time to time. This means that Brueggers Bagels retains the right to evolve its business model, product offerings, and operational guidelines as it sees fit.
For a prospective franchisee, this implies a need to remain adaptable and open to changes implemented by Brueggers Bagels. Franchisees are obligated to maintain the condition and appearance of their bakery consistent with Brueggers Bagels's standards. This includes effecting maintenance and improvements to the bakery as reasonably required, such as replacing worn-out fixtures, repairing the premises, and installing new or modified equipment, subject to the lessor's approval.
If Brueggers Bagels identifies any deficiencies in the bakery's condition or appearance, it will notify the franchisee, specifying the corrective actions needed. Failure to initiate the required maintenance within ten days of receiving notice and to continue a program to complete the maintenance can be considered a material default, potentially leading to termination of the franchise agreement. However, the franchisee's obligation to maintain is suspended during periods when such maintenance is impractical due to Force Majeure events.
Upon termination of the lease or tenant's right to possession, Brueggers Bagels has the right to make modifications to the premises deemed reasonably necessary to protect or remove the System or Proprietary Marks. The tenant is then responsible, at their expense, for repairing any damage caused by these modifications and leaving the premises in good repair.