Bagel Boss
Bagel Boss offers franchise opportunities in the bakery industry, focusing on bagel shops with locations across the U.S., requiring significant investment ranging from $510,099 to $1,100,049 per unit.
Bagel Boss franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single Bagel Boss franchise ranges from $510,099 to $1,100,049. This includes an initial payment of $40,000 that must be paid to the franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000 and it is not refundable under any circumstances [p.9, p.62].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is five percent (5%) of Gross Revenue from the operation of the Franchised Business, paid weekly via ACH on each Tuesday for the sales week ending the immediately preceding Sunday [p.13]. This rate applies to both new and successor franchise agreements, though terms may differ between them [p.60]. Advertising fees are not specified in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial franchise fee is recognized over a term of 10 years from the date the location opens for business [p.173]. Regarding renewal, if you desire to renew, you must advise the franchisor as specified in the FDD. The franchisor may offer to renew under the same terms or extend the term on a month-to-month basis until they can lawfully offer the current form of Renewal Franchise Agreement [p.61].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise. However, a transfer fee is required; it equals 75% of the current initial franchise fee or $25,000 for an existing franchisee in good standing, $3,500 for transfers among owners, and $2,500 for transfers to a spouse, parent, or child due to death or permanent disability. The franchisor also has the right to match any offer and can substitute cash for any financing agreement [p.14, p.87, p.133].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.186]. Additionally, the franchisor has the right to terminate the agreement if the franchisee does not satisfactorily complete the Initial Training Program or if the franchisor determines that the franchisee and their principals cannot complete it successfully [p.64].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You receive a protected territory but not an exclusive one [p.32]. This means you have the right to establish and operate one Bagel Boss outlet within your designated area, but you may face competition from other Bagel Boss outlets owned by the company or its affiliates outside your territory [p.31, p.32].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for you and up to two other individuals included in the franchise fee [p.14]. Additionally, upon reasonable request or as deemed appropriate by the franchisor, they can provide on-site remedial training and assistance at a cost of $350 per trainer per day plus travel, lodging, and meals [p.65]. This ongoing support includes royalties based on gross revenues at 5% which are used for brand development and providing continued support to franchisees [p.159].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, either orally or in writing [p.51]. However, if purchasing an existing outlet, actual records of that outlet may be provided [p.51]. The franchisor can provide financial performance information only under specific conditions outlined by the FTC's Franchise Rule [p.48], and any such information must be included in the disclosure document [p.50].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the products and services specified in the Operations Manual [p.35], and you must offer and sell all services and products that are part of the System, including any additions made by the franchisor in the future [p.35]. You must purchase all equipment, inventory, supplies, and services from the franchisor's designated suppliers or according to their specifications [p.19]. This includes items that may be more expensive than those available elsewhere [p.3].