Brueggers Bagels
Brueggers Bagels offers fresh bakery bagels, coffee, and other food items in franchises across the U.S., known for their quality and variety of breakfast and lunch options. In the quick-service restaurant industry, Brueggers stands out with its focus on bagels and baked goods.
Brueggers Bagels franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a 'Bruegger's Bagels' franchise ranges from $693,800 to $1,227,150. This includes $35,000 that must be paid to the company [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 and it is non-refundable when you sign the Franchise Agreement. [p.12, p.71]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of gross sales on a weekly basis [p.72]. Additionally, franchisees must contribute to advertising cooperatives, remitting a percentage of their coffeehouse or bagel bakery sales for use in advertising and promotional programs [p.290]. This contribution is not specified as a fixed percentage but is required for participating franchisees.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
You can transfer your right to develop and operate a Bakery to an affiliate without the franchisor's prior written consent, provided you maintain direct control over the Franchisee. For other transfers, including those involving employees, you must obtain the franchisor's prior written consent after providing them with the required notice and documentation as specified in Section 8.3 on page [p.126].
On what grounds can the franchisor terminate the agreement?
According to [p.240], a franchisor can terminate a franchise prior to expiration only for good cause, which includes the failure of the franchisee to comply with lawful provisions of the franchise agreement and curing such failure after receiving written notice and a reasonable opportunity (no more than 30 days) to do so.
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you must have a net worth of at least one million dollars according to your most recently concluded fiscal year's financial statements. There is no specific requirement mentioned for liquid capital [p.196].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under any of the agreements mentioned. However, while the Franchise Agreement is in effect, the company will not establish or franchise other bakeries of the same type within your 'Protected Area.' This protection does not apply to certain specified scenarios involving Bruegger's outlets and products [p.42].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs before the opening of the Bakery [p.74] and offers ongoing training as deemed appropriate [p.74]. This training is conducted in English and takes place either at their support center in Denver, Colorado or a designated training store [p.40]. The franchisor also allows for additional Certified Managers or shift supervisors to be trained for a fee [p.40].
How many franchised outlets are there, and how many have closed or been terminated?
According to Exhibit F on page [p.61], as of December 31, 2024, there is a list of franchised Bakeries. However, the number of franchised outlets is not specified in the excerpts. Additionally, Exhibit G lists franchisees or licensees who had an outlet terminated, canceled, or not renewed during the last fiscal year, but the exact number is also not provided in the given information.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations and does not authorize its employees or representatives to do so [p.55]. However, if you are purchasing an existing Bakery, they may provide actual records of that Bakery's performance [p.55]. Any other financial performance information received should be reported to the franchisor’s management as well as relevant regulatory agencies [p.55].
What am I restricted to selling, and where must I buy supplies?
You are required to sell food products, beverages, ingredients, packaging materials, menus, forms, labels, and other supplies that conform to the franchisor’s specifications and quality standards. These items may need to be purchased from vendors approved by the franchisor [p.27]. Additionally, you must follow pricing and promotional activities set by the franchisor [p.38], and in some cases, you are required to purchase certain goods or services exclusively from the franchisor or designated sources [p.77] [p.231].