H And H
H And H operates in Wisconsin with a renewal application or annual report status. Known for offering franchises, it primarily functions within the franchising industry.
H And H franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single H&H Bagels restaurant is approximately $660,110 to $1,020,860. This includes $45,000 that must be paid to the franchisor or its affiliates. [p.5]
What is the initial franchise fee?
The initial franchise fee is $40,000 for a single-unit franchisee. This fee is non-refundable and is paid upon execution of the Franchise Agreement [p.71]. In certain states, such as Virginia, this fee may be deferred until after the franchisor has completed its pre-opening obligations [p.229].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Gross Sales and begins on the date your restaurant opens to the public [p.72]. Additionally, you must contribute 2% of your weekly Gross Sales to the Brand Fund for advertising and marketing purposes [p.17].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts, but if Franchisor is still offering franchises in your market area and you are eligible, you will be entitled to renew the franchise for two additional consecutive terms of five years each (Successor Terms) [p.68].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, H&H Bagels Franchising LLC has the right to refuse a transfer of ownership of a franchise except for good cause [p.221(g)]. Good cause is not fully defined in the excerpts but includes scenarios beyond those explicitly mentioned [p.221(g)].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if you fail to comply with any lawful provision of the Franchise Agreement and do not cure the failure within a reasonable time, which cannot exceed 30 days [p.225]. Additionally, your development of the specified number of restaurants within the agreed timeframe may lead to termination or reduction of your rights if not met [p.42].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisee must demonstrate adequate financial resources and capital to operate the Franchised Business [p.97]. This isn't specified in the excerpts regarding exact net worth or liquid capital amounts required.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under the Franchise Agreement [p.39, p.40]. You may face competition from other franchisees, company-owned outlets, and competitive brands that the franchisor controls [p.39, p.71, p.67]. This isn't specified in the excerpts for a Development Agreement.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that Franchisee and its personnel must complete, which includes in-person, virtual, or a combination of both methods [p.75]. Additionally, after the initial opening, the franchisor may provide up to one additional week of opening support, including observing and coaching the trainer, as well as ongoing advice on various business operations from time to time at its discretion [p.71]. However, this support does not include personnel policies and practices unless they violate brand standards [p.71].
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?
Yes, the franchisor can provide financial performance information if there is a reasonable basis for it and it is included in the disclosure document [p.54]. However, other than the information provided in Item 19, no financial performance representations are made, and employees or representatives are not authorized to make such representations either orally or in writing [p.58].
What am I restricted to selling, and where must I buy supplies?
You are restricted from selling alcoholic beverages other than beer and wine on the premises [p.78]. You may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than buying elsewhere [p.7].