Bottom line
- Total investment $510K – $1.2M including a $40K franchise fee.
- Average unit revenue of $2.2M/year (median $1.7M).
- Rated MODERATE with a risk score of 55/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Bagel Boss unit return on the cash you put in?
Unlevered ROIC · per unit
37%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Bagel Boss units return on equity?
Equity IRR · 5-yr
31.6%
3.95× MOIC
Year-1 DSCR
2.55×
EBITDA ÷ debt service
Equity required
$7.1M
on $17.2M purchase
Total debt
$10.2M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 55 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
36 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Bagel Boss · FDD (2025) PDF