Bottom line
- Total investment $513K – $745K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $632K/year.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 91 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Big Apple Bagels unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Big Apple Bagels units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$379K
on $1.9M purchase
Total debt
$1.5M
SBA $0.9M + senior + seller note
Overview
About
Big Apple Bagels franchisees operate quick-service bagel cafés selling fresh bagels, spreads, sandwiches, and beverages. Day-to-day operations include bagel production/baking, food prep, POS management, staff scheduling, inventory ordering, and customer service in a compact retail footprint.
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 · 20 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
Big Apple Bagels presents moderate-to-caution risk due to declining unit growth, absent net income disclosure, unprotected territories, and high capital requirements relative to an unproven ROI model.
Score breakdown · what drove the 57 / 100 rating
- 01MINORDeclining unit count (-2.0% YoY) signals system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in FDD Item 19 — impossible to validate profitability claims or ROI
- 03MINORNo protected territory creates direct competition risk; new units could cannibalize existing franchise revenue
- 04MINORHigh initial investment ($512.5K–$745K) with unverified return expectations and no income disclosure
- 05MINOR5% royalty on $632K average revenue = $31.6K annual payment with unknown profit margins
- 06MED48-unit system is small and vulnerable; limited economies of scale and supplier negotiating power
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
67 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Big Apple Bagels · FDD (2026) PDF