Long Island Bagel Café
Bottom line
- Total investment $585K – $882K including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $3.1M/year (median $3.1M).
- Rated MODERATE with a risk score of 60/100.
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 Long Island Bagel Café unit return on the cash you put in?
Unlevered ROIC · per unit
67%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Long Island Bagel Café units return on equity?
Equity IRR · 5-yr
25.5%
3.12× MOIC
Year-1 DSCR
3.27×
EBITDA ÷ debt service
Equity required
$17.0M
on $31.4M purchase
Total debt
$14.4M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-service bagel cafés serving fresh bagels, cream cheese spreads, coffee, and breakfast/lunch sandwiches. Daily operations include bagel production/baking, food prep, point-of-sale transactions, staffing 5-15 employees, and inventory/supplier management. Business model relies on high-traffic locations and morning daypart sales.
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 · 16 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
Early-stage or stagnating bagel franchise with opaque profitability, minimal system scale, and corporate financial concerns requiring deep validation before committing $585K+.
Score breakdown · what drove the 60 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents accurate ROI assessment on $585K-$882K investment
- 02MINOROnly 7 units with unknown growth trajectory suggests stagnant or declining system
- 03HIGHGoing Concern status = false indicates potential financial instability at corporate level
- 04MEDHigh royalty base (5% of gross sales) with undisclosed profitability makes break-even unclear
- 05MINORAverage revenue of $313K per unit appears modest for QSR category, limiting franchisee upside
- 06MINOR10-year term is lengthy commitment with minimal franchise support infrastructure (7-unit system)
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Long Island Bagel Café · FDD (2025) PDF