Under the Brueggers Bagels Development Agreement Guaranty, what specific dispute resolution provisions in the Agreement are the Guarantors agreeing to be bound by personally?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned persons agree to be individually bound by all of Franchisee's covenants, obligations, and promises in the Agreement, which include, but are not limited to, the covenants in the following Sections of the Agreement: Section 10 (generally regarding trademarks), Section 12 (generally regarding confidentiality), Section 16 (generally regarding Transfers), Section 18 (generally regarding obligations upon termination or expiration of this Agreement), and Section 19 (generally regarding covenants against competition) of the Agreement.
Each of the undersigned persons acknowledge and agree that: (a) this Guarantee does not grant them any rights under the Agreement (including but not limited to the right to use any of Franchisor's marks such as the "Bruegger's Bagels" marks) and/or the system licensed to Franchisee under the Agreement; (b) that they have read, in full, and under
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, individuals signing the Guaranty to the Development Agreement are agreeing to be bound by all of the Franchisee's obligations, covenants, and promises outlined in the agreement. This includes, but is not limited to, specific sections of the agreement such as Section 10 regarding trademarks, Section 12 regarding confidentiality, Section 16 regarding transfers, Section 18 regarding obligations upon termination or expiration, and Section 19 regarding covenants against competition.
This means that the Guarantors are personally liable for ensuring the franchisee adheres to these specific sections. For example, if the franchisee were to misuse Brueggers Bagels's trademarks, the guarantor could be held personally responsible. Similarly, if the franchisee breaches confidentiality agreements or violates non-compete clauses, the guarantor could face legal action.
It is important to note that the Guaranty does not grant the guarantors any rights under the Development Agreement. Their sole role is to ensure compliance, without gaining any privileges such as the right to use Brueggers Bagels's trademarks or operate under their system. The guarantors also acknowledge that they have fully read and understood the agreement, indicating they are aware of the obligations they are undertaking.
Prospective franchisees should carefully consider who they choose as guarantors, as these individuals are taking on significant personal liability. Guarantors should also fully understand the terms of the Development Agreement, especially the sections mentioned above, to be aware of the obligations they are guaranteeing.