While having an ownership interest in a Brueggers Bagels franchise, what is a prohibited action regarding confidential information?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You may gain access to confidential information and trade secrets of BFC and its affiliates as a result of investing in Franchisee.
You agree that while you have a legal or beneficial ownership interest in Franchisee and thereafter you: (a) will not use the confidential information in any other business or capacity (such use being an unfair method of competition); (b) will exert best efforts to maintain the confidentiality of the confidential information; and (c) will not make unauthorized copies of any portion of the confidential information disclosed in written, electronic or other form.
If you cease to have an interest in Franchisee, you must deliver to BFC any such confidential information in your possession or control.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, if you have a legal or beneficial ownership in a Brueggers Bagels franchise, you are prohibited from using confidential information gained from Brueggers Bagels in any other business or capacity. Brueggers Bagels considers such use an unfair method of competition. Franchisees must also exert their best efforts to keep confidential information private and are not allowed to make unauthorized copies of confidential information whether disclosed in written, electronic, or other forms.
This obligation extends for as long as you have any legal or beneficial ownership interest in the Brueggers Bagels franchise. If you cease to have an interest in the franchise, you are obligated to deliver to Bruegger's Franchise Corporation any confidential information that is in your possession or control.
These restrictions are typical in franchising to protect the franchisor's trade secrets, operational methods, and other proprietary information. A prospective Brueggers Bagels franchisee should carefully review the definition of "confidential information" in the franchise agreement to fully understand the scope of these restrictions.