The Bagel Nook
Bottom line
- Total investment $603K – $1.2M including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.5M/year.
- Rated MODERATE with a risk score of 63/100.
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 The Bagel Nook unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Bagel Nook units return on equity?
Equity IRR · 5-yr
40.6%
5.49× MOIC
Year-1 DSCR
2.10×
EBITDA ÷ debt service
Equity required
$3.4M
on $12.0M purchase
Total debt
$8.6M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-service bagel shops, managing food preparation, customer service, inventory, and staff scheduling. Daily operations involve baking/toasting bagels, preparing breakfast/lunch items, managing point-of-sale systems, and maintaining health/safety compliance in a small retail footprint.
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 · 18 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
The Bagel Nook presents CAUTION-level risk: a micro-franchise with unproven economics (no Item 19), franchisor financial concerns (going concern=false), and insufficient unit density to validate the business model.
Score breakdown · what drove the 63 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $1.5M average revenue claim
- 02MINOROnly 4 units in system with 50% YoY growth indicates extremely early-stage franchise with unproven model
- 03HIGHGoing Concern status is FALSE, suggesting potential financial instability at franchisor level
- 04MINORHigh investment range ($603K-$1.16M) with 6% royalty requires $90K+ annual revenue just to break even on fees
- 05MINOR5-year term is shorter than industry standard (10 years typical), limiting franchisee ROI window
- 06HIGHLack of litigation disclosure combined with going concern flag raises transparency concerns
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Bagel Nook · FDD (2024) PDF