Bagel BossFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Bagel Boss franchise requires a total initial investment of $510K – $1.2M, including a $40K franchise fee. Per the 2025 FDD, average unit revenue was $2.2M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $510K – $1.2M
- 82nd pct Service Resta…
- Avg gross sales
- $2.2M
- 54th pct Service Resta…
- Royalty
- N/A
- Units
- 18
- 46th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 18 to 11 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $510K – $1.2M including a $40K franchise fee.
- Average unit revenue of $2.2M/year (median $1.7M).
- Verdict A (Top Quintile) with a risk score of 45/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Bagel Boss Franchising, LLC
- Parent company
- Bagel Boss Holdings LLC
- CEO title
- CEO and CMO
- Andrew Hazen
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- FL
- HQ
- 1172 S. Dixie Hwy, Suite 335, Coral Gables, FL 33146
- Auditor
- Reese CPA LLC
- Audited financials
- Franchisor revenue
- $253K
- vs $288K prior year
Overview
About
Bagel Boss franchisees operate quick-service bagel shops, managing daily production of fresh bagels, sandwich assembly, and beverage service. Operations involve early morning baking, front-line customer service, inventory management, and compliance with QSR labor and food safety standards. Most units target breakfast/lunch dayparts in urban and suburban locations.
- CEO
- Andrew Hazen
- Headquarters
- FL
- Founded
- 1995
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Utility Deposit | $4K | $8K | |
| Rent (3 Months) | $25K | $55K | |
| Construction, Leasehold Improvements, Furniture and Fixtures | $210K | $510K | |
| Signage | $9K | $30K | |
| Equipment | $150K | $380K | |
| Computer Hardware and Software | $4K | $7K | |
| Initial Inventory | $12K | $22K | |
| Printing, Stationery and Office Supplies | $500 | $1K | |
| Business Permits and Licenses | $7K | $35K | |
| Insurance | $2K | $2K | |
| Professional Fees | $5K | $8K | |
| Training Expense | $9K | $20K | |
| Grand Opening Advertising | $6K | $9K | |
| Additional Funds - Three Months | $28K | $49K | |
| Development Fee (Multi-Unit) | $105K | $315K | |
| Other Expenditures for First Franchised Business (Multi-Unit) | $470K | $1.1M | |
| Total initial investment | $1.1M | $2.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$323K
15.0% margin
Unlevered ROIC
37%
EBITDA / total invested capital
Payback
33 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $510K – $1.2M
- Below avg, review vs category
- Liquid capital req'd
- $28K – $49K
- Below avg, review vs category
- Franchise fee
- $40K – $40K
- Below avg, review vs category
- Royalty
- Five (5%) of Gross Revenues
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $650 |
| Training fee | $500 |
| Transfer fee | $30K |
| Renewal fee | $7K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $2.2M
- Per unit, per year
- Median gross sales
- $1.7M
- Item 19 type
- Historical Sales and select costs
- Sample size
- 12 units
- vs category median 28 · small
- Range (low → high)
- $952K→$4.0M
- Cohort dispersion (min → max)
- Quartile band
- $1.3M→$3.2M
- Bottom 25% → top 25%
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Bagel Boss Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 5
- Last reporting year
- Closed
- 2
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.1%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- +38.5%
- Net unit change last year
- 3-yr CAGR
- +63.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 10
- Franchisor's next-year forecast
- Termination rate
- 10.5%
- Franchisor-initiated terminations
- Ceased ops
- 10.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $629K
- Median loan
- $629K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Bagel Boss's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Bagel Boss presents caution-level risk: regulatory violations, missing profitability transparency (no Item 19), high capital requirements, and ambiguous going concern status offset modest unit growth.
Litigation (Item 3)
Assurance of Discontinuance (AOD) with State of New York (Attorney General Letitia James) regarding unregistered franchise sale. Case: AOD #22-034, initiated June 2021. Settlement: $15,000 penalty/costs plus $40,000 franchisee termination fee refund. Five-year injunction with reporting requirements to NY Attorney General for all franchise agreements executed.
Largest disclosed settlement: $55,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Reese CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 45 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $2.15M average revenue claim—inability or unwillingness to substantiate earnings claims
- 02MINORRecent NY Attorney General enforcement action (June 2021) for unregistered franchise sales and $40K termination fee refund indicates regulatory compliance failures
- 03MEDHigh initial investment range ($510K–$1.17M) paired with undisclosed net income creates uncertainty on actual profitability and ROI timeline
- 04MINORUnit growth of 38.5% YoY is positive but from a small base (18 units) and may not reflect market saturation or franchisee satisfaction in mature markets
- 05HIGH'Going Concern' status listed as False (unclear capitalization intent, but if true) suggests potential financial instability in the franchisor
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius or Population |
| Protected territory | Yes |
| Territory radius | 3 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 1 |
View Item 3 litigation summary
Assurance of Discontinuance (AOD) with State of New York (Attorney General Letitia James) regarding unregistered franchise sale. Case: AOD #22-034, initiated June 2021. Settlement: $15,000 penalty/costs plus $40,000 franchisee termination fee refund. Five-year injunction with reporting requirements to NY Attorney General for all franchise agreements executed.
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 96 hrs
- Training location
- franchisor location and franchisee premises
- Ongoing training
- Required
- Field support
- 136 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- POS system
- Clover / ePAT
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover / ePAT
Item 20 · call current owners
Franchisee Contacts
36 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Bagel Boss · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Bagel Boss franchise?
The total investment to open a Bagel Boss franchise ranges from $510K – $1.2M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Bagel Boss franchise owners earn?
According to Item 19 of the Bagel Boss FDD, the average gross sales per unit is $2.2M. The median is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Bagel Boss's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Bagel Boss (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Bagel Boss franchise locations are there?
As of their most recent FDD filing, Bagel Boss has 18 total units in the United States, including 18 franchised units and 1 company-owned units. 5 new units were opened in the latest reporting year.
Is Bagel Boss a good franchise to buy?
FranchiseVerdict rates Bagel Boss as a A-grade franchise with a risk score of 45 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.