Bruegger's Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Bruegger's franchise requires a total initial investment of $694K – $1.2M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 13.3% charge-off rate across 17 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $694K – $1.2M
- 41st pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 169
- 46th pct Service Resta…
- SBA charge-off
- 13.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · 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
- Total investment $694K – $1.2M including a $35K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above average), verdict score 55/100 (higher is better). SBA loan charge-off rate of 13.3% across 17 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Bruegger's Franchise Corporation
- Parent company
- Bruegger's Enterprises, Inc. (BEI)
- Ultimate parent
- JAB Holding Company
- Predecessor
- Bruegger's Enterprises, Inc. (BEI)
- Prior franchisor entity
- Incorporated in
- Delaware
- HQ
- 1720 S. Bellaire Street, Suite Skybox, Denver, Colorado 80222
Overview
About
Bagel and coffee bakery-cafe (Bruegger's Bagels), owned by BFC (Bruegger's Franchise Corporation)
- CEO
- Jose Duenas
- Headquarters
- Colorado
- Founded
- 1992
- FDD year
- 2024
Can you afford it, and what does the money buy?
Entry cost is about average for a full-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $15K | $45K |
| Equipment, build-out, other | $644K | $1.1M |
| Total initial investment | $694K | $1.2M |
Source: Bruegger's 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $694K – $1.2M
- Middle of category vs category
- Liquid capital req'd
- $15K – $45K
- Top 40% of category vs category
- Franchise fee
- $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
What do units actually make?
Source: FDD 2024 · Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
5.0% royalty + 3.5% ad fund.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Full-Service Restaurants averages
How Bruegger's Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 169
- Opened
- N/A
- Last reporting year
- Closed
- N/A
- Company-owned
- 124
- Corporate units in the system
- % franchised
- 27%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 1
No multi-year history disclosed and no opening/closing activity in the last reporting year.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 17
- Loan volume
- $5.7M
- Median loan
- $300K
- 50th percentile
- Charge-off rate
- 13.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 86.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 11
- Defaults
- 2
- Typical loan rate
- 5.6%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7222
- Jobs supported
- 425
- 7.5 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Top lenders financing Bruegger's franchisees
Showing 3 of 11 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
SBA loans charge off at 13.3% — 17% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Colorado Bagel Company, LLC v. Bruegger's Franchise Corporation (D.Ct. Denver, CO, Case No. 2024CV33517) - franchisee sued after franchisor terminated at-will relationship post-lease-expiration; claims included breach of contract, breach of implied covenant, promissory estoppel; settled May 9, 2025 with mutual releases, franchise agreement extended, no successor rights.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | none |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Franchisor can compete | Yes |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Mandatory arbitration | Yes |
| Arbitration location | Colorado |
| Governing law | Colorado |
| Litigation count | 1 |
View Item 3 litigation summary
Colorado Bagel Company, LLC v. Bruegger's Franchise Corporation (D.Ct. Denver, CO, Case No. 2024CV33517) - franchisee sued after franchisor terminated at-will relationship post-lease-expiration; claims included breach of contract, breach of implied covenant, promissory estoppel; settled May 9, 2025 with mutual releases, franchise agreement extended, no successor rights.
Items 10, 11
Training & Operations
- Classroom training
- 69 hrs
- On-the-job training
- 380 hrs
- Training location
- Denver, Colorado headquarters and designated training bakeries across the U.S.
- Ongoing training
- Required
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Bruegger's franchise?
The total investment to open a Bruegger's franchise ranges from $694K – $1.2M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Bruegger's franchise owners earn?
Bruegger's does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Bruegger's's franchise failure rate?
Based on SBA 7(a) loan data, Bruegger's has a charge-off rate of 13.3% across 17 loans, meaning 13.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Bruegger's franchise locations are there?
As of their most recent FDD filing, Bruegger's has 169 total units in the United States.
Is Bruegger's a good franchise to buy?
FranchiseVerdict rates Bruegger's as a B-grade franchise with a verdict score of 55 out of 100 (higher is better), 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.
For franchisors
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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.