Under the Brueggers Bagels Development Agreement, what obligations of the Company are the Guarantors unconditionally guaranteeing to Bruegger's Franchise Corporation?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| As an inducement to BRUEGGER'S FRANCHISE CORPORATION ("Franchisor"), a Delaware | |
|---|---|
| corporation, to execute a Development Agreement (the "Agreement") with | |
| ("Company"), a | undersigned |
| , | |
| the | |
| individuals (collectively, the "Guarantors"), jointly and severally, hereby unconditionally guarantee to | |
| Franchisor, 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' 2025 Franchise Disclosure Document, the Guarantors, by signing the agreement, are unconditionally guaranteeing that the Company's obligations to Bruegger's Franchise Corporation (BFC) will be fulfilled. This guarantee extends to all obligations under the Development Agreement, as well as any other agreements or arrangements between the Company and BFC. This means that the Guarantors are legally bound to ensure that the Company adheres to all terms and conditions outlined in these agreements.
This obligation includes, but is not limited to, financial obligations such as payments and fees, as well as non-monetary obligations such as adherence to operational standards, compliance with brand guidelines, and fulfillment of developmental milestones. The Guarantors' liability is joint and several, meaning that each Guarantor is individually responsible for the entire obligation, and BFC can pursue any or all of them for the full amount if the Company fails to meet its obligations.
For a prospective Brueggers Bagels developer, this requirement underscores the importance of carefully selecting the individuals who will act as Guarantors. These individuals should be fully aware of the obligations they are undertaking and have the financial capacity and commitment to ensure the Company's compliance with the Development Agreement and related contracts. The guarantee provides Bruegger's Franchise Corporation with an additional layer of security, ensuring that there are responsible parties who are personally invested in the success and proper operation of the developed Brueggers Bagels locations.