Under the Brueggers Bagels Development Agreement Guaranty, what is the role of the 'Company'?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| As an inducement to BRUEGGER'S BAGELS FRANCHISE CORPORATION ("Licensor"), a |
|---|
| Delaware corporation, to execute a License Agreement (the "Agreement") with |
| ("Company"), a |
| , the undersigned individuals (collectively, the "Guarantors"), jointly |
| and severally, |
| hereby |
| unconditionally guarantee to Licensor, its affiliates, and their successors and assigns (collectively, |
| "BFC") that all of the Company's obligations under the Agreement, and under other agreements or |
| arrangements between the Company and BFC, will be punctually paid and performed. |
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the 'Company' in the context of the Development Agreement Guaranty refers to the entity that is entering into a License Agreement with Bruegger's Bagels Franchise Corporation (BFC). The 'Company' is the recipient of the license to operate a Brueggers Bagels restaurant.
The Development Agreement Guaranty ensures that all obligations of the 'Company' under the License Agreement and any other agreements with BFC are fulfilled. This means the 'Company' is responsible for punctually paying and performing all duties and responsibilities outlined in their agreements with Brueggers Bagels.
In practical terms, this arrangement provides Brueggers Bagels with a safeguard. If the 'Company' fails to meet its financial or operational obligations, the guarantors are held responsible for ensuring those obligations are met. This structure is common in franchising to protect the franchisor's interests and maintain brand standards.