Under the License Agreement for Brueggers Bagels, who must personally guarantee the franchisee's obligations?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, if you are entering into a Franchise Agreement, persons with legal or beneficial ownership interests in the Franchisee are required to be personally bound by the Franchisee's obligations under the Franchise Agreement. This includes obligations such as restrictions on competition, confidentiality, ownership changes, and dispute resolution. This requirement ensures that individuals with a vested interest in the Brueggers Bagels franchise are accountable for upholding the terms of the agreement.

Brueggers Bagels may also require the spouse of an owner to execute a Confidentiality and Non-Competition Agreement if the owners reside in a community property state. This is to further protect the franchisor's confidential information and prevent unfair competition. By signing the agreement, these individuals acknowledge that their execution is a condition of acquiring and holding their ownership interest in the Franchisee and that they have received sufficient consideration for doing so.

Furthermore, Brueggers Bagels requires each person to agree to be individually bound by all of the Franchisee's obligations, including those pertaining to trademarks, confidentiality, transfers, obligations upon termination or expiration, and covenants against competition. This guarantee does not grant them any rights under the agreement, and they must have the opportunity to consult with a lawyer before signing the guarantee. This ensures that the franchisor is protected should the franchisee default on their obligations.