Supersymmetry breaking via gaugino condensation is studied in vacua of hete
rotic M-theory with five-branes. We show that supersymmetry is still broken
by a global mechanism and that the non-perturbative superpotential takes t
he standard form. When expressed in terms of low energy fields, a modificat
ion arises due to a threshold correction in the gauge kinetic function that
depends on five-brane moduli. We also determine the form of the low energy
matter field Kahler potential. These results are used to discuss the soft
supersymmetry breaking parameters, in particular the question of universali
ty.