H&H BagelsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A H&H Bagels franchise requires a total initial investment of $566K – $830K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $2.7M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $566K – $830K
- 36th pct Service Resta…
- Avg gross sales
- $2.7M
- 24th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 3
- 8th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.8x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $566K – $830K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.7M/year.
- Verdict A (Top Quintile) with a risk score of 42/100.
- 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
- Legal entity
- H&H Bagels Franchising LLC
- Parent company
- H&H Bagels Group, Inc.
- Incorporated in
- NY
- HQ
- 109 W. 27th Street, Suite #3B, New York, NY 10001
- Auditor
- Perlson LLP
- Audited financials
- Franchisor revenue
- $30K
- vs $240K prior year
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
H&H Bagels franchisees operate bagel shops focused on retail sales and potentially catering services. Day-to-day operations include production/baking of bagels, counter service, inventory management, staff scheduling, and local marketing. The business model relies on foot traffic and repeat customers in a single location.
- CEO
- Jay Rushin
- Headquarters
- NY
- Founded
- 2021
- FDD year
- 2024
- States available
- 1
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $50K | $100K |
| Equipment, build-out, other | $476K | $690K |
| Total initial investment | $566K | $830K |
Source: H&H Bagels 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$268K
10.0% margin
Unlevered ROIC
35%
EBITDA / total invested capital
Payback
35 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $566K – $830K
- Better than avg vs category
- Liquid capital req'd
- $50K – $100K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- Weekly by Electronic Funds Transfer · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- 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 |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $2.7M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate-owned outlets
- Sample size
- 3 units
- vs category median 13 · small
- Range (low → high)
- $1.6M→$3.7M
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How H&H Bagels Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
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 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.
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
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
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into H&H Bagels's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Perlson LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 42 / 100 rating
- 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
- 05MINORHigh investment range ($566K–$829.5K) relative to micro-franchise size creates poor risk/reward ratio
- 06MINOR6% 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 45 hrs
- Training location
- On-site and off-site
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
23 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 $566K – $830K, 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?
According to Item 19 of the H&H Bagels FDD, the average gross sales per unit is $2.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 3 total units in the United States, including 0 franchised units and 3 company-owned units.
Is H&H Bagels a good franchise to buy?
FranchiseVerdict rates H&H Bagels as a A-grade franchise with a risk score of 42 out of 100, 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
Are you the franchisor?
If you represent H&H Bagels, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.