While having an ownership interest in a Brueggers Bagels franchise, what are some prohibited actions 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 Brueggers Bagels's 2025 Franchise Disclosure Document, as a franchisee with legal or beneficial ownership, you are restricted from certain actions regarding confidential information. Specifically, you cannot use the confidential information gained from Brueggers Bagels in any other business or capacity, as this would be considered an unfair method of competition. Franchisees must also exert their best efforts to maintain the confidentiality of this information.
Additionally, franchisees are prohibited from making unauthorized copies of any confidential information disclosed by Brueggers Bagels, whether it is in written, electronic, or any other form. If a franchisee ceases to have an interest in the Brueggers Bagels franchise, they are obligated to deliver to Bruegger's Franchise Corporation any confidential information that is in their possession or control.
These restrictions are typical in franchising to protect the franchisor's trade secrets and proprietary information. Prospective Brueggers Bagels franchisees should understand these obligations and ensure they have systems in place to safeguard confidential information both during their time as a franchisee and after they leave the system. Failing to comply with these confidentiality obligations could result in legal action from Brueggers Bagels.