PopUp Bagels
PopUp Bagels offers unique bagel flavors and schmears in a franchise shop concept. Known for creative bagel offerings, it requires an initial investment of $312,600 to $884,150 and operates in the quick-service food industry.
About PopUp Bagels
PopUp Bagels is an American boutique bagel franchise started by Adam Goldberg and Jeff Lewis in Westport, Connecticut in 2020. Originally a pop-up for Connecticut locals, it has now established retail and franchise locations along the East Coast, as well as in the states of California, Tennessee, Texas and Illinois.
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PopUp Bagels franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a new PopUp Bagels Shop franchise is between $312,600 and $884,150. This includes an initial franchise fee ranging from $35,000 to $58,500 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee for each PopUp Bagels franchise is $35,000 [p.23]. This fee is not refundable under any circumstances [p.11, p.86].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of the Shop's Gross Sales, paid weekly [p.86]. There is also a monthly Technology Fee not exceeding $750 per month, which covers certain technology products or services associated with the Franchise System [p.42]. This Technology Fee does not cover software subscriptions or license fees payable to third parties [p.42]. There are no specified advertising fees in the provided excerpts, but the franchisee may be required to participate in national, regional, and local promotions, special offers, and discounts as dictated by the franchisor [p.55, p.93].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise term isn't specified in these excerpts. However, you have the right to acquire a first successor franchise to continue operating the Franchised Shop as a PopUp Bagels Shop for five years after the expiration of the initial agreement, provided certain conditions are met [p.114]. Additionally, the franchisor may refuse to renew the franchise without fairly compensating you for your inventory, supplies, equipment, fixtures, and furnishings if the term is less than 5 years and specific conditions apply [p.5].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you must obtain a true and complete copy of a bona fide, executed written offer from a responsible and fully-disclosed buyer. This offer must include details of the proposed sale's payment terms, financing sources, and an earnest money deposit of at least 5% of the proposed purchase price [p.113]. Additionally, you cannot transfer your franchise rights except to or among your current owners or in a transfer under Section 17.D, which are not subject to this section [p.113] and [g] on page 5 specifies that transfers can be refused by the franchisor for good cause.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement prior to its expiration for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity to cure, not exceeding 30 days [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific financial requirements such as net worth or liquid capital that a prospective franchisee needs to meet for qualification.
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, or other channels of distribution controlled by the company [p.47, p.49]. However, during the term of the Development Rights Agreement (DRA), the company and its affiliates will not establish PopUp Bagels Shops within your territory except for Non-Traditional Venues [p.47, p.49, p.153].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training through virtual and distance learning methods, as well as at designated locations such as their corporate headquarters or an operating PopUp Bagels Shop. This initial training is mandatory for up to four people, including the Operating Principal, General Manager, and two assistant managers [p.43, p.88]. The franchisor also offers periodic training courses and programs that the franchisee must attend, with a maximum of five days per year at no additional cost beyond travel and living expenses if requested locally [p.45]. Additionally, the franchisor's training team assists with hands-on training for restaurant-level general managers (Bagel Chefs) and assistant managers [p.45]. For replacement General Managers, the franchisee must pay the current training fee, which can range up to $1,500 plus certain expenses [p.46].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 29, 2024, there were nine PopUp Bagels Shops operating (five in Connecticut and four in New York), but this number does not specify 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 may provide actual records of an existing outlet if you are purchasing one. However, they do not make any financial performance representations and do not authorize their employees to make such representations either orally or in writing [p.63]. This isn't specified in the excerpts for other forms of financial performance information sharing.
What am I restricted to selling, and where must I buy supplies?
You are required to operate the Shop according to PopUp Bagels' Brand Standards, which dictate what products and services you can offer. You must buy or lease all Operating Assets, products, and services only from manufacturers, suppliers, or distributors designated or approved by PopUp Bagels (which may include them, their affiliates, or other restricted sources) at the prices those suppliers choose to charge [p.25]. This includes items like food and beverage products and ingredients, small-wares, and branded merchandise [p.26].