Einstein Bros. Bagels
Bottom line
- Total investment $555K – $1.0M including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $1.1M). Estimated payback in 2.0 years.
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 20 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 Einstein Bros. Bagels unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Einstein Bros. Bagels units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$446K
on $2.2M purchase
Total debt
$1.8M
SBA $1.1M + senior + seller note
Overview
About
Franchisees operate quick-service bagel cafes, managing point-of-sale operations, food preparation, inventory, staffing, and customer service. Day-to-day responsibilities include opening/closing procedures, maintaining food quality standards, compliance with brand standards, and local marketing while paying 5% of gross sales in royalties.
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 · 22 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
Moderate-to-caution risk profile with solid unit growth and no litigation, but lack of financial disclosure (Item 19) and high capital requirements relative to claimed net income create material due diligence gaps.
Score breakdown · what drove the 46 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify claimed $400,560 average net income
- 02MINORHigh initial investment range ($555K–$1.03M) with 5% royalty creates significant break-even pressure on $1.11M average revenue
- 03MED12.5% YoY unit growth masks potential saturation — need to verify growth composition (new vs. relocated vs. closed)
- 04MINORProtected territory claims require verification — territory size, population density, and exclusivity terms undefined
- 05MINOR415-unit system is mid-sized; vulnerability to economic downturn higher than established 1000+ unit franchises
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
95 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Einstein Bros. Bagels · FDD (2025) PDF