Jeff’s Bagel Run
Bottom line
- Total investment $538K – $814K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.0M/year. Estimated payback in 4.6 years.
- Rated STRONG with a risk score of 50/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 JEFF’S BAGEL RUN unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 JEFF’S BAGEL RUN units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$628K
on $3.1M purchase
Total debt
$2.5M
SBA $1.6M + senior + seller note
Overview
About
Franchisees operate quick-service bagel shops focused on fresh bagels, breakfast sandwiches, and coffee beverages. Day-to-day responsibilities include inventory management, food preparation, point-of-sale operations, staff scheduling, and local marketing to drive foot traffic and repeat customers.
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 · 10 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
Minimal unit growth, high capital requirements, undocumented financial claims, and thin profitability margins create moderate-to-high execution risk for franchisees.
Score breakdown · what drove the 50 / 100 rating
- 01MINOROnly 11 units with unknown growth trajectory suggests stagnant or declining system — no expansion momentum in 10-year term
- 02MINORHigh investment range ($537K–$813K) relative to average net income ($147K) yields 3.6–5.5 year payback with zero margin for error
- 03MEDNo Item 19 (financial performance representations) disclosed — cannot validate that 'average revenue' claim or assess unit-level variance
- 04MED6% royalty on gross sales is standard but aggressive when net margin is only ~14% — leaves limited cushion for operational underperformance
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
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
JEFF’S BAGEL RUN · FDD (2025) PDF