Long Island Bagel CaféFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Long Island Bagel Café franchise requires a total initial investment of $585K – $882K, including a $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $3.1M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $585K – $882K
- 37th pct Service Resta…
- Avg gross sales
- $3.1M
- 26th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 7
- 17th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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 4.3x in gross revenue, well above the typical 1.5-2.5x range.
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).
- Verdict A (Top Quintile) with a risk score of 34/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- LIBC FRANCHISE LLC
- CEO title
- Chief Executive Officer
- Randy Narod
- CEO experience
- 23 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NY
- HQ
- 1 RXR Plaza, Suite 350, Uniondale, New York 11556
- Auditor
- Miller CPA, PLLC
- Audited financials
- Franchisor revenue
- $64K
- vs $97K prior year
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.
- CEO
- Randy Narod
- Headquarters
- NY
- Founded
- 2019
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Leasehold Improvementsnot refundable | $225K | $325K | |
| Security Deposits | $4K | $30K | |
| Furniture, Fixtures and Equipmentnot refundable | $225K | $300K | |
| All Signagenot refundable | $15K | $20K | |
| Initial Inventory (Proprietary Items)not refundable | $5K | $10K | |
| Initial Inventorynot refundable | $5K | $5K | |
| Blueprints and Plansnot refundable | $10K | $20K | |
| Computer/POS Systemnot refundable | $2K | $3K | |
| Security System, Televisions, etc.not refundable | $4K | $8K | |
| Travel, lodging and meals for initial trainingnot refundable | $1K | $10K | |
| Insurance - 3 Monthsnot refundable | $3K | $6K | |
| Grand Opening Advertisingnot refundable | $10K | $15K | |
| Licenses and Permitsnot refundable | $2K | $5K | |
| Professional Feesnot refundable | $2K | $10K | |
| Additional Funds - 3 Monthsnot refundable | $38K | $81K | |
| Total initial investment | $585K | $882K |
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
$376K
12.0% margin
Unlevered ROIC
47%
EBITDA / total invested capital
Payback
25 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $585K – $882K
- Better than avg vs category
- Liquid capital req'd
- $38K – $81K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · 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 | $200 |
| Training fee | $250 |
| Transfer fee | $15K |
| Renewal fee | $18K |
| 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
- $3.1M
- Per unit, per year
- Median gross sales
- $3.1M
- Item 19 type
- gross_sales
- Sample size
- 7 units
- vs category median 13
- Range (low → high)
- $2.4M→$4.7M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
Revenue is 4.3x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Full-Service Restaurants averages
How Long Island Bagel Café Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- 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
- 6
- Corporate units in the system
- % franchised
- 14%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
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 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
Early-stage or stagnating bagel franchise with opaque profitability, minimal system scale, and corporate financial concerns requiring deep validation before committing $585K+.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Miller CPA, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 34 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population based |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.0 mi |
| Territory population | 40,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Nassau County, New York |
| 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
- 44 hrs
- On-the-job training
- 50 hrs
- Training location
- headquarters and on-site
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Long Island Bagel Café · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Long Island Bagel Café franchise?
The total investment to open a Long Island Bagel Café franchise ranges from $585K – $882K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Long Island Bagel Café franchise owners earn?
According to Item 19 of the Long Island Bagel Café FDD, the average gross sales per unit is $3.1M. The median is $3.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Long Island Bagel Café's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Long Island Bagel Café (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 Long Island Bagel Café franchise locations are there?
As of their most recent FDD filing, Long Island Bagel Café has 7 total units in the United States, including 1 franchised units and 6 company-owned units.
Is Long Island Bagel Café a good franchise to buy?
FranchiseVerdict rates Long Island Bagel Café as a A-grade franchise with a risk score of 34 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.
For franchisors
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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.