Upon termination or expiration of the Franchise Agreement, what is the Brueggers Bagels tenant required to do with the lease at the franchisor's request?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchise Agreement is terminated or expires for any reason during the term of the Lease or any extension thereof, the Tenant, upon the written request of Franchisor, shall assign to Franchisor all of its right, title and interest in and to the Lease.
If Franchisor elects to accept the assignment of the Lease from the Tenant, it shall give the Tenant and the Landlord written notice of its election to acquire the leasehold interest.
The Landlord hereby consents to the assignment of the Lease from the Tenant to Franchisor, subject to the Tenant's and/or Franchisor's curing any defaults of the Tenant under the Lease before Franchisor takes possession of the Leased Premises.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, if the Franchise Agreement is terminated or expires for any reason during the term of the lease, the tenant (franchisee), upon written request from Brueggers Bagels, must assign all rights, title, and interest in the lease to Brueggers Bagels.
Brueggers Bagels will provide written notice to both the tenant and the landlord if it elects to accept the assignment of the lease. The landlord's consent is required for this assignment, but it is subject to the condition that any outstanding defaults of the tenant under the lease are resolved by either the tenant or Brueggers Bagels before Brueggers Bagels takes possession of the leased premises.
This clause ensures that Brueggers Bagels has the option to maintain control of the location even if a franchisee's agreement ends, which is a fairly standard practice in franchising to protect brand presence and continuity. It's important for a prospective franchisee to understand the conditions under which their lease can be taken over and to ensure they maintain good standing with their lease obligations to avoid potential issues.