Liberty Bagels Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Liberty Bagels is a quick-service franchise serving fresh-made bagels, spreads, and breakfast sandwiches. Franchisees run the shops, managing baking, food prep, and counter service.
FranchiseVerdict summary · 2026
A Liberty Bagels franchise requires a total initial investment of $804K – $1.3M, including a $40K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $804K – $1.3M
- 90th pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 4
- 19th 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 $804K – $1.3M including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 21 includes only an audited opening balance sheet as of March 7, 2025; franchisor (Liberty Bagels Franchise LLC) was formed January 31, 2025 and has no income statement. Exhibit F financial statements are image-only in the source text; no figures or CPA firm name extractable.
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- DATAItem 19 reports affiliate unit financials rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Liberty Bagels Franchise LLC
- Parent company
- None
- CEO title
- Co-Founder and CEO
- Alex Vithoulkas
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NY
- HQ
- 260 W 35th Street, New York, New York 10001
- Auditor
- Metwally CPA PLLC
- Audited financials
Overview
About
- CEO
- Alex Vithoulkas
- Headquarters
- NY
- Founded
- 2025
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 60% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Construction, Leasehold Improvementsnot refundable | $230K | $470K | |
| Fixtures, Furniture and Equipmentnot refundable | $131K | $213K | |
| Signage (interior and exterior)not refundable | $37K | $48K | |
| Computer, Software and POS Systemnot refundable | $16K | $22K | |
| Opening Inventorynot refundable | $13K | $21K | |
| Rent Deposits | $34K | $69K | |
| Utility Deposits | $7K | $8K | |
| Insurance Deposits and Premiumsnot refundable | $2K | $5K | |
| Pre-opening Travel Expensenot refundable | $6K | $21K | |
| Professional Feesnot refundable | $17K | $35K | |
| Grand Opening Marketingnot refundable | $5K | $8K | |
| Business Permits and Licensesnot refundable | $2K | $4K | |
| Menu Printing, Stationery and Office Suppliesnot refundable | $10K | $16K | |
| Additional funds - 3 Monthsnot refundable | $255K | $325K | |
| Total initial investment | $804K | $1.3M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $804K – $1.3M
- Bottom third — review vs category
- Liquid capital req'd
- $255K – $325K
- Bottom third — review vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Inventory (initial) | $13K – $21K |
| Total fee load | 6.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Liberty 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 Liberty Bagels unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
9%
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: 2025 FDD
Financial Performance
Item 21 includes only an audited opening balance sheet as of March 7, 2025; franchisor (Liberty Bagels Franchise LLC) was formed January 31, 2025 and has no income statement. Exhibit F financial statements are image-only in the source text; no figures or CPA firm name extractable.
Company-owned outlets only - not franchisee performance
- Item 19 type
- affiliate unit financials
- Sample size
- 4
- vs category median 20 · small
- Range (low → high)
- $1.3M→$5.9M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- 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 6.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Item 19 reports affiliate unit financials rather than annual gross sales, so unit revenue is not directly comparable.
Multi-unit rate
33% of franchisees own multiple units, a moderate multi-unit rate.
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 Liberty Bagels Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- 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
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 33.3%
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Micro-scale bagel franchise with unverifiable financial claims, no growth data, and insufficient franchisee base to validate business model or provide meaningful support infrastructure.
Litigation (Item 3)
No litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 43 / 100 verdict
- 01MINOROnly 4 units in entire system indicates extremely small/nascent franchise with no proven scalability or support infrastructure
- 02MINORUnknown unit growth trajectory is critical gap — unclear if system is expanding, stagnant, or contracting
- 03MINORHigh investment range ($804K-$1.3M) relative to system size creates illiquidity risk and limits exit options
- 04MEDTiny franchisee base (4 units) means minimal peer support network, limited operational best practices sharing, and insufficient data for validation
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Territory population | 50,000 |
| 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 |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 14 |
| Curable defaultsℹ | 13 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 56 hrs
- Training location
- New York, NY (affiliate-owned shops or other facility designated by franchisor)
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee selects with franchisor approval; franchisor assigns Territory
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Liberty Bagels · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Liberty Bagels franchise?
The total investment to open a Liberty Bagels franchise ranges from $804K – $1.3M, 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 Liberty Bagels franchise owners earn?
Liberty 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 Liberty 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 Liberty Bagels FDD and qualifies whose outlets they describe.
What is Liberty Bagels's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Liberty 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 Liberty Bagels franchise locations are there?
As of their most recent FDD filing, Liberty Bagels has 4 total units in the United States, including 0 franchised units and 4 company-owned units.
Is Liberty Bagels a good franchise to buy?
FranchiseVerdict rates Liberty Bagels as a C-grade franchise with a verdict score of 43 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
Are you the franchisor?
If you represent Liberty Bagels, you can request corrections or provide updated information.
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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.