Bagel Boss Franchise Cost, Revenue & Review 2026
- Investment
- $510K – $1.2M
- Disclosed sales
- $2.2M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Bagel Boss is a quick-service franchise serving fresh-made bagels, spreads, and breakfast and lunch sandwiches. Franchisees run the shops, managing baking, food prep, and counter service.
FranchiseVerdict summary · 2026
A Bagel Boss franchise requires a total initial investment of $510K – $1.2M, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.2M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $510K – $1.2M
- 77th pct Service Resta…
- Avg gross sales
- $2.2M
- Outlet subset34th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 19
- 49th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $510K – $1.2M including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.2M/year (median $1.7M) (reported for a subset of outlets rather than the whole system).
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- GROWTHPositive: net +5 franchised outlets in the latest year (5 opened, 0 closed); 5 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Bagel Boss Franchising, LLC
- Parent company
- Bagel Boss Holdings LLC
- FDD Item 1, page 6 of the 2025 FDD
- Predecessor
- Bagel Boss Holding Corp. / Bagel Boss America Corp. / Bagel Boss Franchise Corp.
- Prior franchisor entity
- 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
- $497K
- vs $288K prior year
Overview
About
- CEO
- Andrew Hazen
- Headquarters
- FL
- Founded
- 2020
- FDD year
- 2025
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 74% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 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 | |
| Total initial investment | $510K | $1.2M |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $510K – $1.2M
- Bottom third — review vs category
- Liquid capital req'd
- $28K – $49K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% |
| Technology fee | $650 |
| Training fee | $9K |
| Transfer fee | $30K |
| Renewal fee | $7K |
| Inventory (initial) | $12K – $22K |
| 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.
What do units actually make?
Average unit sales run 121% above the quick-service restaurants norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Bagel Boss until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$881K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Bagel Boss unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $2.2M
- Per unit, per year
- Median gross sales
- $1.7M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 12 outlets
- vs category median 19
- Range (low → high)
- $952K→$4.0MCited, not corroborated — printed on page 47 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.2M/year in gross sales. Median is $1.7M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 2.6x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 6.0% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 63.6% CAGR over 3 years across 19 units — operators are staying and new ones are joining.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Bagel Boss Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 19
- Opened
- 5
- Last reporting year
- Closed
- 0
- 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
- 95%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +63.6%
- Net unit change over 3 years
- 3-yr CAGR
- +63.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 5
- 0.26 per open outlet · Item 20 Table 5
- 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 · 4 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.
Where the owners are · Item 20 owner list
20 current owners across 4 states.
- NY 14
- FL 4
- CA 1
- NJ 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Predecessor Bagel Boss Holding Corp. entered Assurance of Discontinuance with NY AG (AOD #22-034) for selling franchise while unregistered; paid $15,000 in penalties and refunded $40,000 termination fee to franchisee
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 55 / 100 verdict
- 01MINORRecent NY Attorney General enforcement action (June 2021) for unregistered franchise sales and $40K termination fee refund indicates regulatory compliance failures
- 02MEDHigh initial investment range ($510K–$1.17M) paired with undisclosed net income creates uncertainty on actual profitability and ROI timeline
- 03MINORUnit 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
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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 |
| Arbitration location | Coral Gables, Florida |
| Jury trial waiver | No |
| Governing law | FL |
| Litigation count | 1 |
View Item 3 litigation summary
Predecessor Bagel Boss Holding Corp. entered Assurance of Discontinuance with NY AG (AOD #22-034) for selling franchise while unregistered; paid $15,000 in penalties and refunded $40,000 termination fee to franchisee
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 96 hrs
- Training location
- Long Island, NY area
- Ongoing training
- Required
- Field support
- 136 hrs/yr
- On-site visits per year
- Time to open
- 8 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor approves within 14 business days
- Franchisor financing
- Not offered
- Item 10
- POS system
- Clover
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Bagel Boss?
Bagel Boss is franchised by Bagel Boss Franchising, LLC. Its parent company is Bagel Boss Holdings LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Bagel Boss FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Bagel Boss FDD and qualifies whose outlets they describe.
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 19 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 B-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
Are you the franchisor?
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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.