H&H Bagels Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
H&H Bagels is a quick-service franchise serving classic New York bagels with spreads, smoked fish, and sandwiches. Franchisees run the shops, managing baking, food prep, and counter service.
FranchiseVerdict summary · 2026
A H&H Bagels franchise requires a total initial investment of $633K – $892K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $633K – $892K
- 85th pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 12
- 41st pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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
- COSTTotal investment $633K – $892K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSFY2023 audited total revenue of $239,870 comprised franchisee fees $31,038, area development fees $206,984, and other income $1,848. Franchisor reported a net loss of $(181,836); member's equity declined to $24,061. Auditor signed only as 'Certified Public Accountants,' Woodbury, NY (firm name not present in extracted text).
- RISKVerdict D (Below average), verdict score 34/100 (higher is better).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- H&H Bagels Franchising LLC
- Parent company
- H&H Bagels Group, Inc.
- CEO title
- Chief Executive Officer
- Jay Rushin
- Incorporated in
- New York
- HQ
- 109 W. 27th Street, Suite #3B, New York, NY 10001
- Auditor
- Certified Public Accountants, Woodbury, NY (1000 Woodbury Road, Suite 102)
- Audited financials
- Franchisor revenue
- $853K
- vs $474K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Marks Bakery
- Midtown Bakery
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Jay Rushin
- Headquarters
- New York
- Founded
- 2021
- FDD year
- 2024
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 16% above the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $25K | $25K |
| Equipment, build-out, other | $568K | $827K |
| Total initial investment | $633K | $892K |
Source: H&H Bagels 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
- $633K – $892K
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $25K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 0.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Training fee | $8K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $8K – $10K |
| Total fee load | 0.1% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
H&H Bagels did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one H&H Bagels unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
Below the 30–60% attractive-franchise band
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: 2024 FDD
Financial Performance
FY2023 audited total revenue of $239,870 comprised franchisee fees $31,038, area development fees $206,984, and other income $1,848. Franchisor reported a net loss of $(181,836); member's equity declined to $24,061. Auditor signed only as 'Certified Public Accountants,' Woodbury, NY (firm name not present in extracted text).
Company-owned outlets only - not franchisee performance
- Item 19 type
- historical gross sales
- Sample size
- 6
- vs category median 20 · small
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 0.1% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
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 averages
How H&H Bagels Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- 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
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 58%
- vs corporate-owned
- Multi-unit owners
- Outlier
- Reported value implausible. See FDD Item 20
3-year detail · Item 20
- Opened (3yr)
- 6
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 12 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
12
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $3.5M
- Median loan
- $824K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (4 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Micro-system with undisclosed profitability, unprotected territory, and going concern risk makes this a speculative investment with limited scalability validation.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Certified Public Accountants, Woodbury, NY (1000 Woodbury Road, Suite 102)⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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: Yes
Score breakdown · what drove the 34 / 100 verdict
- 01MINOROnly 3 units in the entire system with unknown/likely stagnant growth trajectory
- 02MEDNet income not disclosed in FDD Item 19 — impossible to validate actual profitability claims
- 03MINORNo protected territory — direct competition from other H&H franchisees or company-owned locations permitted
- 04HIGHGoing Concern status is FALSE — franchisor may have solvency or operational stability issues
- 05MINOR6% royalty on $2.76M average revenue = ~$165K annually before considering operating costs, debt service, and rent
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 0.1% 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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 15 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 15 |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 45 hrs
- Training location
- Franchisee's restaurant (on-site), with some virtual/pre-training components
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisee, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
H&H Bagels · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a H&H Bagels franchise?
The total investment to open a H&H Bagels franchise ranges from $633K – $892K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do H&H Bagels franchise owners earn?
H&H Bagels 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 Item 19 in the H&H 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 H&H Bagels FDD and qualifies whose outlets they describe.
What is H&H Bagels's franchise failure rate?
SBA 7(a) loan charge-off data is not available for H&H Bagels (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many H&H Bagels franchise locations are there?
As of their most recent FDD filing, H&H Bagels has 12 total units in the United States, including 7 franchised units and 5 company-owned units. 6 new units were opened in the latest reporting year.
Is H&H Bagels a good franchise to buy?
FranchiseVerdict rates H&H Bagels as a D-grade franchise with a verdict score of 34 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.