Einstein Bros. Bagels Franchise Cost, Revenue & Review 2026
- Investment
- $650K – $1.2M
- Disclosed sales
- $1.1M
- gross sales, not profit
- SBA charge-off
- 16.7%
- on 20 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Einstein Bros. Bagels is a quick-service bakery-cafe franchise serving fresh-baked bagels, cream cheese, specialty coffee, and breakfast and lunch items. Franchisees run cafes managing baking, counter service, and staffing in traditional and non-traditional locations.
FranchiseVerdict summary · 2026
A Einstein Bros. Bagels franchise requires a total initial investment of $650K – $1.2M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.1M[2]. SBA 7(a) loans show a 16.7% charge-off rate across 20 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $650K – $1.2M
- 84th pct Service Resta…
- Avg gross sales
- $1.1M
- 21st pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 464
- 88th pct Service Resta…
- SBA charge-off
- 16.7%
- % of SBA 7(a) loans not repaid · median varies by category
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 $650K – $1.2M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.1M/year (median $1.0M). Note: this is gross profit, not take-home income.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 16.7% across 20 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +6 franchised outlets in the latest year (6 opened, 0 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Einstein Bros. Bagels Franchise Corporation
- Parent company
- Einstein Noah Restaurant Group, Inc. (ENRG)
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- JAB Holding Company
- FDD Item 1, page 7 of the 2026 FDD
- Predecessor
- Einstein and Noah Corp. (ENC)
- Prior franchisor entity
- CEO title
- President, CEO and Director
- Jessica DePetro
- Incorporated in
- Colorado
- HQ
- 1720 S. Bellaire Street, Suite Skybox, Denver, Colorado 80222
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $1.0B
- vs $1.1B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 7
2 other brands on this site name JAB Holding Company as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Jessica DePetro
- Headquarters
- Colorado
- Founded
- 1995
- FDD year
- 2026
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 95% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $595K | $1.2M |
| Total initial investment | $650K | $1.2M |
Source: Einstein Bros. Bagels 2026 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
- $650K – $1.2M
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $40K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $800 |
| Training fee | $1K |
| Transfer fee | $18K |
| Renewal fee | $4K |
| Inventory (initial) | $25K – $37K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 11% above the quick-service restaurants norm.
Source: FDD 2026 · 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 Einstein Bros. Bagels 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
$979K
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 Einstein Bros. Bagels 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: 2026 FDD
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $1.0M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 63 outlets
- vs category median 19 · large
- Range (low → high)
- $423K→$2.1MCited, not corroborated — printed on page 65 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 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 $1.1M/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 9.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 12.5% CAGR over 3 years across 464 units — operators are staying and new ones are joining.
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 Einstein Bros. Bagels 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 464
- Opened
- 6
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 395
- Corporate units in the system
- % franchised
- 15%
- vs corporate-owned
- Net growth (3-yr)
- +12.5%
- Net unit change over 3 years
- 3-yr CAGR
- +12.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Transfer rate
- 0.2%
- Owners selling to other franchisees
- Termination rate
- 1.2%
- Franchisor-initiated terminations
- Ceased ops
- 0.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 45 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
657 current owners across 45 states.
- TX 83
- FL 76
- CO 57
- AZ 41
- CA 36
- GA 26
- MI 23
- UT 22
- IL 21
- NV 21
- NC 17
- OH 17
- +33 more states
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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 20
- Loan volume
- $10.6M
- Median loan
- $593K
- 50th percentile
- Charge-off rate
- 16.7%
- on 20 loans · 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)
- 81.8%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 2
- Typical loan rate
- 5.6%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 290
- 3.5 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing Einstein Bros. Bagels franchisees
Showing 3 of 13 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Einstein Bros. Bagels from SBA 7(a) FOIA data.
- Principal loss rate
- 4.9%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 5.64%
- Avg chargeoff amount
- $408K
- Lender concentration
- 14.3%
- Job velocity
- 3.5 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 290
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Farmers State Bank | 2 | $1.6M | 50.0% |
| 2 | Hershey Bank | 2 | $435K | N/A |
| 3 | Village Bank and Trust, National Association | 1 | $320K | 0.0% |
| 4 | Busey Bank | 1 | $850K | N/A |
| 5 | Capital One, National Association | 1 | $834K | 0.0% |
| 6 | Seacoast National Bank | 1 | $632K | 0.0% |
| 7 | PNC Bank, National Association | 1 | $200K | 0.0% |
| 8 | Marine Bank & Trust Company | 1 | $613K | 0.0% |
| 9 | Renasant Bank | 1 | $573K | 100.0% |
| 10 | First Financial Bank | 1 | $1.5M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 3 | 0 | 0.0% |
| ILIllinois | 2 | 0 | 0.0% |
| NENebraska | 2 | 0 | -- |
| CTConnecticut | 1 | 0 | 0.0% |
| GAGeorgia | 1 | 1 | 100.0% |
| MIMichigan | 1 | 0 | 0.0% |
| MTMontana | 1 | 0 | 0.0% |
| OHOhio | 1 | 0 | 0.0% |
| OKOklahoma | 1 | 0 | 0.0% |
| WAWashington | 1 | 1 | 100.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
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)
Subject: the franchisor is a named party (defendant).
Three pending cases as of the FDD date: (1) GKFC-Laurelwood, LLC v. Einstein and Noah Corp. (Colorado state court, Feb 2026) - promissory estoppel/detrimental reliance over a terminated location; (2) Einstein Bros. Bagels Franchise Corp. v. Waleed Mansour, Superwings, Inc., and Bagel Genius, Inc. (D. Colo., Oct 2025) - franchisor-initiated suit for breach of Area Development Agreement; (3) Bagel Genius, Inc., Superwings, Inc., and Waleed Mansour v. Einstein Bros. Bagels Franchise Corp. (Cal. Superior Court, Oct 2025) - franchisee counter-suit alleging fraud, misrepresentation, and related claims arising from the same Area Development Agreement dispute. Additionally, a franchisor-initiated trademark infringement action: Einstein Bros. Bagel Franchise Corp. and Einstein and Noah Corp. v. J.F.C Management Holdings, LLC and Ramona D. Hall (D. Colo., filed Dec 2024).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financials are the consolidated statements of Caribou Coffee Company, Inc. and Subsidiaries ("CCC"), the franchisor's indirect corporate parent and the guarantor of the franchisor's obligations; the franchisor (Einstein Bros. Bagels Franchise Corporation) has no separate audited statements. Figures are stated in thousands and have been scaled x1000. Net worth is total shareholders' equity ($703.9M). total_liabilities ($739.0M = current $183.765M + long-term $555.261M) EXCLUDES $37.766M of "noncontrolling interests subject to put provisions" (mezzanine), so total assets ($1,480.671M) = liabilities + mezzanine + equity. Net income $29.627M is consolidated (incl. NCI); $28.520M attributable to CCC. Item 19 avg/median/high/low are for the FRANCHISED cohort (63 units); company-owned cohort (345 units) was higher: avg $1,177,470 / median $1,107,540 / high $3,293,452 / low $465,124.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MED12.5% YoY unit growth masks potential saturation — need to verify growth composition (new vs. relocated vs. closed)
- 02MINORProtected territory claims require verification — territory size, population density, and exclusivity terms undefined
- 03MINOR415-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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · 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 | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Colorado |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 4 |
View Item 3 litigation summary
Three pending cases as of the FDD date: (1) GKFC-Laurelwood, LLC v. Einstein and Noah Corp. (Colorado state court, Feb 2026) - promissory estoppel/detrimental reliance over a terminated location; (2) Einstein Bros. Bagels Franchise Corp. v. Waleed Mansour, Superwings, Inc., and Bagel Genius, Inc. (D. Colo., Oct 2025) - franchisor-initiated suit for breach of Area Development Agreement; (3) Bagel Genius, Inc., Superwings, Inc., and Waleed Mansour v. Einstein Bros. Bagels Franchise Corp. (Cal. Superior Court, Oct 2025) - franchisee counter-suit alleging fraud, misrepresentation, and related claims arising from the same Area Development Agreement dispute. Additionally, a franchisor-initiated trademark infringement action: Einstein Bros. Bagel Franchise Corp. and Einstein and Noah Corp. v. J.F.C Management Holdings, LLC and Ramona D. Hall (D. Colo., filed Dec 2024).
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 268 hrs
- Training location
- Denver, Colorado support center or an approved Certified Training Restaurant
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- NCR/Aloha
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR/Aloha
Item 20 · call current owners
Franchisee Contacts
657 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 Einstein Bros. Bagels franchise?
The total investment to open a Einstein Bros. Bagels franchise ranges from $650K – $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 Einstein Bros. Bagels franchise owners earn?
According to Item 19 of the Einstein Bros. Bagels FDD, the average gross sales per unit is $1.1M. The median is $1.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Einstein Bros. Bagels?
Einstein Bros. Bagels is franchised by Einstein Bros. Bagels Franchise Corporation. Its parent company is Einstein Noah Restaurant Group, Inc. (ENRG). The ultimate parent named in the FDD is JAB Holding Company. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Einstein Bros. Bagels 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 Einstein Bros. Bagels FDD and qualifies whose outlets they describe.
What is Einstein Bros. Bagels's franchise failure rate?
Based on SBA 7(a) loan data, Einstein Bros. Bagels has a charge-off rate of 16.7% across 20 loans, meaning 16.7% 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 Einstein Bros. Bagels franchise locations are there?
As of their most recent FDD filing, Einstein Bros. Bagels has 464 total units in the United States, including 69 franchised units and 395 company-owned units. 6 new units were opened in the latest reporting year.
Is Einstein Bros. Bagels a good franchise to buy?
FranchiseVerdict rates Einstein Bros. Bagels as a B-grade franchise with a verdict score of 56 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
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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.