Under the Brueggers Bagels Development Agreement Guaranty, what is the role of the 'Affiliates'?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BACKGROUND
A. We and our affiliates, through significant expenditures of time, skill and money, have developed a proprietary system relating to the preparation and promotion of distinctive bagels, baked goods, and cream cheese and the establishment and operation of restaurants specializing in the sale of the bagels, baked goods, cream cheese, sandwiches, soups, salads, and other food and beverage items (the "System").
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.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the role of 'affiliates' is primarily defined in the context of Brueggers Bagels' proprietary system. Brueggers Bagels and its affiliates have developed a proprietary system related to the preparation and promotion of bagels, baked goods, cream cheese, and the operation of restaurants. This system includes secret recipes, distinctive bakery design, standards for ingredients and operations, and advertising programs. These elements may be changed, improved, and further developed by Brueggers Bagels and its affiliates over time.
Brueggers Bagels' affiliates are also connected to the recipes and manufacturing processes. The distinguishing characteristics of the Brueggers Bagels system include the recipes and processes that are owned by Brueggers Bagels and its affiliates.
In the context of the Development Agreement, 'affiliates' also come up in the agreement that the developer will not, without BFC's consent, directly or indirectly (such as through an affiliate or family members) own any legal or beneficial interest in, or render services or give advice in connection with: (a) any Competing Business located anywhere; or (b) any entity located anywhere that grants franchises or licenses interests to others to operate any Competing Business.