Liberty BagelsFranchise Cost, Revenue & Review 2026
Data from FDD filing
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]. Per the 2025 FDD, average unit revenue was $3.6M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $804K – $1.3M
- 94th pct Service Resta…
- Avg gross sales
- $3.6M
- 57th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 4
- 17th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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 3.4x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
135% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $804K – $1.3M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $3.6M/year, with an estimated 135% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 33/100.
- Emerging franchise: only 1 year of franchising with 4 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Liberty Bagels Franchise LLC
- 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
Liberty Bagels franchisees operate quick-service bagel shops, likely managing daily production of bagels, sandwich assembly, inventory procurement, staff scheduling, and point-of-sale operations. The business model centers on high-volume breakfast/lunch service with emphasis on bagel quality, customization options, and customer throughput typical of QSR breakfast concepts.
- CEO
- Alex Vithoulkas
- Headquarters
- NY
- Founded
- 2025
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 15 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.
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
$574K
16.0% margin
Unlevered ROIC
43%
EBITDA / total invested capital
Payback
28 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $804K – $1.3M
- Below avg, review vs category
- Liquid capital req'd
- $255K – $325K
- Below avg, review vs category
- Franchise fee
- $40K – $40K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 0.7 yrs
- From FDD / Item 19
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 |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $3.6M
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $1.4M
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 134.9%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Affiliate-owned outlets
- Sample size
- 4 units
- vs category median 28 · small
- Range (low → high)
- $1.3M→$5.9M
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Liberty Bagels Compares
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
- Transfers (3yr)
- 0
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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: Yes
- 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 33 / 100 rating
- 01MINOROnly 4 units in entire system indicates extremely small/nascent franchise with no proven scalability or support infrastructure
- 02HIGHNo Item 19 financial performance representations (Going Concern = False) — cannot verify if average revenues of $4.6M and net income of $1.4M are actually achievable by franchisees
- 03MINORUnknown unit growth trajectory is critical gap — unclear if system is expanding, stagnant, or contracting
- 04MINORHigh investment range ($804K-$1.3M) relative to system size creates illiquidity risk and limits exit options
- 05MEDTiny 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius or Population |
| 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 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| 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
- franchisor facility and on-site
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
4 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?
According to Item 19 of the Liberty Bagels FDD, the average gross sales per unit is $3.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 A-grade franchise with a risk score of 33 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.
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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.