Under the Brueggers Bagels Development Agreement, what obligation does the developer undertake?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, a developer enters into a Development Agreement with Bruegger's Franchise Corporation (BFC) to develop one or more Brueggers Bagels bakeries. This agreement mandates that individuals with legal or beneficial ownership interests in the developer are personally bound by the developer's obligations. These obligations encompass several critical areas, including restrictions on competition, maintaining confidentiality, adhering to restrictions on ownership changes, and complying with dispute resolution provisions.

This means that anyone holding an ownership stake in the development entity is legally responsible for ensuring the developer meets all the requirements outlined in the Development Agreement. This personal liability extends to safeguarding confidential information related to Brueggers Bagels, refraining from competitive business activities, and adhering to the agreed-upon methods for resolving any disputes that may arise. The obligations remain in effect for the duration of the Development Agreement and as long as the individual maintains any legal or beneficial ownership interest in the developer.

Furthermore, upon termination or expiration of the Development Agreement, the developer is obligated to cease any actions related to establishing or operating bakeries for which a Franchise Agreement has not been executed. The developer must also discontinue using confidential methods, procedures, and techniques associated with the Brueggers Bagels system, including the brand's names and marks. All advertising material must be withdrawn, and the developer cannot represent themselves as a current or former franchisee. The developer must also return all manuals, records, and instructions containing confidential information to Brueggers Bagels.