The Bagel Nook
The Bagel Nook offers fresh bagels, sandwiches, and other treats in a funky, fun atmosphere. Known for its made-from-scratch ingredients, this franchise joins the casual dining sector with a focus on quality and variety.
The Bagel Nook franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a Bagel Nook franchise ranges from $603,225 to $1,164,500. This range includes a mandatory payment of $30,000 to the franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000.00 and it is not refundable [p.8].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of Gross Revenue, paid weekly via ACH on each Monday for the previous week [p.12]. Advertising costs are not specified as a separate fee in the provided excerpts; however, the company has been expensing approximately $5,025 and $2,727 respectively in advertising costs annually [p.132].
How long is the initial franchise agreement, and can I renew it?
The term of the respective franchise life, which is estimated to be the full term of the franchise agreement, on a straight-line basis [p.130]. The excerpts do not specify whether you can renew the initial franchise agreement or provide details about renewal terms.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your Franchised Business, but you will be required to pay a transfer fee [p.13]. Additionally, the franchisor has the right to match any offer to purchase the business and can substitute cash for any financing agreement [p.13].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if they cancel or terminate any unauthorized agreements or subleases entered into by the Franchisee, for any cause or ground that would entitle the franchisor to do so [p.101]. Additionally, the franchisor may terminate the agreement if the franchisee does not satisfactorily complete the Initial Training Program as determined by the franchisor in its sole discretion [p.48].
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?
Yes, you will have a protected territory where you are the sole Bagel Nook franchisee. However, this protection is limited as the franchisor retains the right to sell its products and services through other channels within your territory [p.27]. The exact boundaries of your protected territory will be defined based on demographic data and political boundaries prior to purchasing the franchise [p.19].
What training and ongoing support does the franchisor provide?
The franchisor provides an 'as-needed' initial training program conducted by Alex Berkowitz, who has operated the original business since 2015. This includes standards for operations, management, and marketing [p.25]. Additionally, upon request or as deemed appropriate by the franchisor, they may provide on-site remedial training and assistance with trained representatives at a fee of $500 per day plus travel, lodging, and meals [p.49].
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 may provide actual records of an existing outlet's financial performance if you are purchasing one. However, they do not make representations about future financial performance or past performance of company-owned or franchised outlets, except for providing annual unaudited financial statements upon request and allowing publication of franchisee financial performance in the disclosure document after the Effective Date. [p.35, p.22, p.146]
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling all services and products that are part of the System, and any new services and products that the franchisor incorporates into the System in the future. You may only offer services and products that have been previously approved by the franchisor [p.29]. Additionally, you must purchase or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than similar items available elsewhere [p.3].