Under the Brueggers Bagels Development Agreement Guaranty, what is the role of the 'Spouse'?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Guarantor resides in a community property state, the Guarantor will cause his or her spouse, if any, to execute this Guaranty.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, if a Brueggers Bagels guarantor resides in a community property state, they must ensure that their spouse executes the Guaranty. This requirement ensures that the spouse is also bound by the terms of the Guaranty.
This is particularly important in community property states, where assets acquired during the marriage are jointly owned. By having the spouse sign the Guaranty, Brueggers Bagels aims to protect its interests by ensuring that jointly owned assets can be used to satisfy any obligations under the Development Agreement. This provides an additional layer of security for Brueggers Bagels.
For a prospective Brueggers Bagels franchisee, this means that if they reside in a community property state, their spouse will be required to sign the Guaranty, making them equally responsible for the obligations under the Development Agreement. Franchisees should be aware of this requirement and discuss it with their spouse before entering into a franchise agreement with Brueggers Bagels.