According to the 2025 Brueggers Bagels Franchise Disclosure Document, Exhibit B to the Franchise Agreement details the Guaranty, Indemnification, and Acknowledgment. In this context, 'Franchisor' refers to Bruegger's Franchise Corporation. The role of Brueggers Bagels as the Franchisor is to receive a guarantee from the franchisee (or its owners) that all obligations of the franchisee under the Franchise Agreement, as well as any other contract between the franchisee and Brueggers Bagels, will be punctually paid and performed. This guarantee is provided to induce Brueggers Bagels to sign the Franchise Agreement with the franchisee.

In simpler terms, Brueggers Bagels requires a guarantee to ensure that the franchisee meets all financial and operational obligations. This is a common practice in franchising to protect the franchisor's interests and brand standards. The guarantee essentially means that if the franchisee fails to meet their obligations, Brueggers Bagels can seek recourse directly from the individuals who provided the guarantee, such as the owners of the franchisee entity.

This requirement has significant implications for prospective Brueggers Bagels franchisees. If the franchisee is a corporation, partnership, or limited liability company, the owners are required to execute a standard form of Guaranty. This means that the personal assets of the owners could be at risk if the Brueggers Bagels franchise fails to meet its obligations. The guarantee remains in effect even if the Franchise Agreement is terminated or expires, as long as the obligations arose before the termination date. Franchisees should carefully consider these implications and seek legal advice before signing the Franchise Agreement and related guarantees.