Bottom line
- Total investment $804K – $1.3M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $4.6M/year. Estimated payback in 0.7 years.
- Rated MODERATE with a risk score of 60/100.
- 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
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 Liberty Bagels unit return on the cash you put in?
Unlevered ROIC · per unit
41%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Liberty Bagels units return on equity?
Equity IRR · 5-yr
27.9%
3.42× MOIC
Year-1 DSCR
2.91×
EBITDA ÷ debt service
Equity required
$11.2M
on $23.1M purchase
Total debt
$11.9M
SBA $5.0M + senior + seller note
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.
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 · 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 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.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 60 / 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
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Liberty Bagels · FDD (2025) PDF