Risk Score
Pending analysis
Investment Range
$693,800 - $1,227,150
Franchise Fee
$25,000
Total US Locations
178
Business Summary
Bruegger's Bagels franchises offer fresh bakery bagels, baked goods, coffee, cream cheese, sandwiches, soups, salads, and other food and beverage items to the public. These Bruegger's Bakeries specialize in retail sales for carry-out and/or on-premises consumption, primarily serving breakfast and lunch.
Corporate History
Bruegger's Franchise Corporation, or BFC, was incorporated in Delaware on March 11, 1992, and operates under the names Bruegger's and Bruegger's Bagels. The company's predecessor is Bruegger's Enterprises, Inc. (BEI), which owns the proprietary recipes and manufacturing processes for Bruegger's bagels and cream cheese. BEI was acquired by Caribou Coffee Company, Inc. in October 2017, making Caribou the parent company, which in turn is owned by JAB Holding Company (JAB). Bruegger's Franchise Corporation began offering franchises in March 1993. While BFC itself does not operate any Bruegger's outlets, its affiliate BEI operates 130 company-owned bakeries as of the FDD date.
Financial Overview
Investment Range
$693,800 - $1,227,150
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
3.5%
Equipment Costs (Low)
$545,800
Equipment Costs (High)
$935,900
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Caribou Coffee Company, Inc. has a strong financial standing, consistently reporting positive net income over the past three fiscal years ($57.7 million in 2024, $59.5 million in 2023, and $50.2 million in 2022). The company maintains healthy cash reserves and has growing shareholder equity. Its financial statements are audited and received an unqualified opinion from independent accountants, indicating fair presentation without any going concern qualifications. The company operates as a subsidiary of Panera Brands, Inc., benefiting from a larger corporate financial structure, and its debt is primarily held under an intercompany loan agreement with its parent, Panera Brands, Inc., which is in compliance with all its financial covenants.
Financing Details
Bruegger's Franchise Corporation does not offer direct or indirect financing to its franchisees. The company will also not guarantee a franchisee's promissory note, lease, or any other financial obligation.
Performance Metrics
Total US Locations
178
Franchised Units
48
Corporate Units
130
Avg Square Footage
2,400
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Bruegger's Franchise Corporation is currently involved in one active lawsuit filed on November 14, 2024, by a Bruegger's franchisee, Colorado Bagel Company, LLC. The case centers on the franchisee's operation of its store after the franchise agreement expired, following Bruegger's termination of the at-will relationship. The franchisee's complaint includes claims for breach of contract, breach of implied covenant of good faith and fair dealing, promissory estoppel, declaratory relief, and injunctive relief, seeking unspecified damages and injunctive relief. Bruegger's Franchise Corporation has denied the allegations and asserted counterclaims. The court granted a temporary restraining order and a preliminary injunction against Bruegger's Franchise Corporation, prohibiting the termination from taking effect. The case is currently in the discovery phase.
Bankruptcy History
Bruegger's Franchise Corporation has no bankruptcy history to disclose in this FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Bruegger's Bagels franchisees must provide written notice to the company between six and nine months before the current agreement ends. They must remodel and refurbish their bakery to meet the company's current design standards for new locations, be in good standing without any defaults under their agreements, and ensure all monetary obligations to Bruegger's Franchise Corporation and its affiliates are paid on time. Franchisees are also required to sign the then-current form of franchise agreement, have their owners sign a current guaranty, sign a general legal release, and meet the company's current qualification and training requirements for new franchisees. A renewal fee equal to 10% of the then-current initial franchise fee for a new bakery is also required.
Training & Support Program
Franchisor Assistance
Bruegger's Franchise Corporation provides comprehensive assistance to its franchisees. Before opening, Bruegger's Bagels helps with site selection guidelines, reviews proposed sites, provides on-site evaluations if deemed advisable, and furnishes prototypical plans for construction and layout. They also review preliminary and final architectural and engineering drawings and provide management training for up to two individuals. On-site opening assistance is also available, and Bruegger's Bagels develops a grand opening marketing plan that franchisees must implement. After opening, ongoing support includes designating approved vendors for products like cream cheese, administering the system-wide marketing fund, and making additional advertising and promotional materials available for purchase. Bruegger's Bagels also provides advice and written materials on managing and operating the bakeries, reviews proposed new suppliers, and defends franchisees against third-party claims of trademark infringement.
Initial Training Hours
569
Training Location
Denver, Colorado or a designated training bakery
Ongoing Support
After opening, Bruegger's Franchise Corporation provides ongoing support by designating vendors for proprietary products like cream cheese and other items. Bruegger's Bagels administers a system-wide marketing fund, and makes advertising and promotional materials available for franchisees to purchase. The company also offers advice and written materials on bakery management and operations. Upon request, Bruegger's Bagels will review proposed new suppliers to ensure they meet standards. Additionally, the company defends franchisees against third-party claims of trademark infringement. Certified Managers are periodically required to attend refresher courses, seminars, and other training programs.
Franchise Requirements
Ideal Candidate Profile
Bruegger's Franchise Corporation primarily seeks individuals or business entities who are experienced and successful multi-unit foodservice operators and are willing to make the necessary investment and effort to operate and expand a Bruegger's Bagels business.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
3
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Bruegger's Franchise Corporation typically defines the Protected Area as a radius of one and a half miles from the front door of the business location. In urban areas, Bruegger's Bagels states that the Protected Area may be smaller.
Staffing Notes
Bruegger's Bagels requires that each bakery always be under the active, full-time management of an Operating Partner or a Certified Manager who has successfully completed the company's training program and passed proficiency tests. The Store Manager, who may also serve as the Operating Partner, must have at least three years of experience in a management role within a quick service or fast-casual restaurant. Certified Managers must also obtain designated food safety certifications, such as 'ServSafe' certification. Franchisees are responsible for maintaining a competent and adequately staffed team to operate the bakery in accordance with Bruegger's standards, ensuring good customer relations.