Jeffs Bagel Run
Jeff's Bagel Run offers fresh-baked bagels, specialty drinks, and snacks in franchised stores. Known for its variety of bagel options and coffee selections, this franchise operates in the quick-service restaurant sector.
Jeffs Bagel Run 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 'JEFF'S BAGEL RUN' Store ranges from $537,558 to $813,790, excluding land. This range includes initial fees totaling between $225,800 to $331,000 that must be paid to the franchisor or its affiliates, as well as pre-opening inventory costs estimated between $185,300 to $286,000 [p.1, p.12].
What is the initial franchise fee?
The initial franchise fee is $30,000 when signing your first franchise agreement [p.22]. For subsequent agreements, the initial franchise fee is $20,000, with a $10,000 credit from the initial development fee applied against it [p.22].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of the franchisee's gross sales [p.82], while the advertising fee is 2% of the franchisee's gross revenue [p.223]. These fees are calculated daily and paid via a merchant service [p.223].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide details about the length of the initial franchise agreement or the renewal process beyond mentioning that certain conditions apply for renewal or extension [p.206].
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, you need to obtain the franchisor's consent, which comes with a non-refundable administrative/transfer fee equal to 25% of the initial franchise fee plus the franchisor’s out-of-pocket costs [p.109(k)]. This isn't specified in the excerpts for selling or transferring without the franchisor's consent.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.196]. However, under Virginia law, terminating a franchise without reasonable cause is unlawful [p.203], and certain provisions for termination may not be enforceable if they do not constitute 'reasonable cause.'
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on the debt-to-capital employed ratio rather than specific net worth or liquid capital requirements. However, it does state that at no time during the term can the franchisee's ratio of debt to capital employed be greater than 50% [p.155].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, and other competitive brands controlled by the company [p.39]. However, the company will not open additional 'JEFF'S BAGEL RUN' Stores in your Development Area during the term of the Area Development Agreement [p.40], subject to certain reserved rights.
What training and ongoing support does the franchisor provide?
The franchisor provides initial POS training on site and continued POS training through the company intranet. Basic troubleshooting and tech support are also provided. Additionally, services such as assistance in site selection, guidance regarding inventory purchasing, store setup consulting, and employee training are included in the franchise fee revenue [p.223]. The franchisor may also provide ongoing support for operating the 'JEFF'S BAGEL RUN' Store, though specific details beyond initial training are not extensively detailed in the excerpts provided.
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 shares limited historical revenue and expense information for affiliate-operated stores [p.58], but it does not provide full financial information on its franchisees due to lack of collected financial statements from them [p.58]. The franchisor also provides sales information through the POS system for franchise-operated stores, which is included in the tables provided [p.58]. However, this isn't specified in the excerpts regarding earnings or profitability projections.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the Approved Products as specified by the franchisor, which currently include bagels, specialty cream cheeses, cookies, coffee, and tea. You must purchase and maintain an inventory of these supplies from approved suppliers. Additionally, you may be required to use Ancillary Products, some of which may be designated brands or models, though you are not obligated to purchase them from the franchisor or its affiliates unless they supply the same. [p.25]