Under what specific condition can a Brueggers Bagels licensee terminate the License Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or License Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 3.1 of the Franchise Agreement; Section 2.1 of the License Agreement; Paragraph 2 of Franchise Agreement Addendum | The term under the Franchise Agreement is the earlier of 10 years from the date the Bakery opens, or 11 years from the effective date of the agreement; the term under the License Agreement is five years from the effective date of the agreement, and 10 years for all airport locations. |
| b. Renewal or extension of the term | Section 3.2 of the Franchise Agreement; Section 2.2 of the License Agreement | Provided we are still franchising and have not made a decision to withdraw from the geographic market of the Bakery, and if you are in good standing, you can request a successor franchise agreement for one additional 10-year term. Under the License Agreement: two additional five year terms, and one additional 10-year term for airport locations. |
| c. Requirements for you to renew or extend | Section 3.2 of the Franchise Agreement; Section 2.2 of the License Agreement | Written notice, sign successor agreement, remodel, sign general release, and pay one-half of the then-current franchise fee. The Successor Franchise Agreement may contain terms that are materially different from your expiring Franchise Agreement, such as different fee requirements. |
| d. Termination by | Franchise Agreement: Not | Not applicable (subject to applicable state |
| you | applicable | law) |
| License Agreement: Section 10.2(e) | If you are in compliance with the agreement and upon 60 days’ notice to us the lease or concession agreement with your host facility is terminated, expires or is not renewed (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a licensee can terminate the License Agreement under a specific condition. The FDD outlines that a licensee can terminate the agreement if they are in compliance with the agreement and provide 60 days' notice to Brueggers Bagels. This termination option is contingent upon the lease or concession agreement with the licensee's host facility being terminated, expired, or not renewed. This termination is subject to applicable state law.
This provision is particularly relevant for Brueggers Bagels locations operating within larger facilities such as airports or universities, where the physical space is leased or granted under a concession agreement. If the host facility decides to end the lease or concession for any reason, the Brueggers Bagels licensee has the right to terminate their License Agreement, provided they are in good standing with Brueggers Bagels and give the required notice.
It is important to note that this termination right is specifically for the License Agreement and not the Franchise Agreement. Franchisees should be aware of the conditions under which they can terminate their agreements, as these can significantly impact their investment and operational plans. Licensees should consult the full License Agreement for complete details and seek legal counsel to fully understand their rights and obligations under the agreement and applicable state laws.