Big Apple Bagels
Big Apple Bagels offers franchises in bagel stores selling bagels, cream cheese, muffins, sandwiches, and coffee. Known for its breakfast offerings, it operates in the quick-service restaurant sector.
About Big Apple Bagels
Big Apple Bagels is an American franchised chain of bakery-cafes based in Deerfield, Illinois. Coffee, along with a variety of other related products are sold. The products are sold as three different brands: Big Apple Bagels, Brewster's Coffee, and My Favorite Muffin.
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Big Apple Bagels franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening a BAGELS Production Store ranges from $503,500 to $718,000, including the franchise fee and other costs. For a BAGELS Satellite Store, the range is from $324,500 to $530,500 [p.1, p.18, p.108].
What is the initial franchise fee?
The initial franchise fee varies depending on the type of store and agreement: - For a BAGELS Satellite Store, it is $10,000 [p.202, p.18]. - For a BAGELS Production Store, it is $10,000 [p.18]. - If signing more than one franchise agreement, the fee for subsequent BAGELS Production Stores is $20,000 [p.27]. This isn't specified in the excerpts.
What are the ongoing royalty and advertising fees?
The FDD does not provide specific details on the amount of ongoing royalty and advertising fees. This isn't specified in the excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically 10 years [p.258]. You may generally renew the franchise agreement upon its expiration, subject to the company's approval [p.258].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a transfer of ownership of a BAGELS Store franchise can only be made in conjunction with a transfer of the Franchise Agreement. The franchisor must interview and evaluate the proposed transferee at their principal place of business or another location designated by the franchisor before approving the transfer [p.142]. Additionally, good cause is required for the franchisor to refuse such a transfer, which includes but is not limited to specific criteria [p.6].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.293]. Additionally, if a franchisee fails to select and submit an approved site within 90 days or disagrees with the site selection without having signed a Preliminary Agreement, the franchisor may terminate the franchise [p.48]. This isn't specified in the excerpts for other specific grounds of termination.
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?
No, you do not receive an exclusive territory under the standard franchise agreement [p.54]. You may face competition from other franchisees and outlets owned by BAB, and there is no protection against BAB granting franchises to others within your area [p.90]. However, if you enter into an Area Development Agreement, you can obtain a protected territory but only if you meet your development obligations [p.55].
What training and ongoing support does the franchisor provide?
The franchisor provides initial pre-opening services including operational materials and training courses [p.258]. This is considered a separate performance obligation from the franchise rights, with revenue recognized when these services are performed [p.258]. Additional training near the time of store opening is also provided by an employee of the franchisor at a location designated by them [p.44]. Ongoing support includes refresher and supplemental training programs or regional/national conventions, which franchisees are required to attend at their own expense [p.111].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, in 2023 and 2024, there were a total of 48 fully-reporting franchised BAGELS Stores. During the 2024 Fiscal Year, one BAGELS Store was opened and one was closed. However, this does not specify how many stores have been terminated in total or over what period. [p.76]
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations except for existing outlets that are being sold. If you purchase an existing outlet, you may receive actual records of that outlet's performance [p.80]. The franchisor can provide financial performance information only if there is a reasonable basis and it is included in the Disclosure Document [p.76]. Additionally, the franchisor may share information about possible performance at a particular location or under specific circumstances, but this must be supplemented with actual records of an existing outlet [p.76].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling Branded Products through the retail channel only from your BAGELS Store location. You must purchase initial and ongoing inventory of private label items, including branded disposables and catering packaging, from BAB's designated supplier [p.35]. This restriction applies to both the products you sell and the supplies you need for those products.