About Einstein Bros. Bagel Franchise
Einstein Bros.
Bagels is a well known bakery cafe franchise specializing in fresh baked bagels, cream cheese and spreads, specialty coffees and teas, baked sweets, snacks, and creative lunch items.
Part of the Einstein Noah Restaurant Group, Inc.
Einstein Bros. Bagel Franchise Cost & Fees
Minimum Investment
$564K
Average Investment
$750K
Maximum Investment
$936K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales (Franchise Agreement); 6.5% of Gross Sales (License Agreement, reduced to 4% for airport locations) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Gross Sales under the Franchise Agreement | National brand fund |
| Total Investment Range | $564,300 – $935,850 | Includes build-out, inventory, working capital |
The investment range of $564K–$936K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales (Franchise Agreement); 6.5% of Gross Sales (License Agreement, reduced to 4% for airport locations)) and marketing fee (4% of Gross Sales under the Franchise Agreement) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Construction Costs | $210,000 | $310,000 |
| Computer Equipment & Electronics | $26,000 | $54,000 |
| Furniture, Fixtures & Equipment | $175,000 | $261,000 |
| Signage & Graphics | $10,000 | $50,000 |
| Professional Fees (incl. architectural or engineering fees and permit and impact fees) | $30,000 | $35,000 |
| Initial Franchise Fee | $35,000 | $35,000 |
| Design Review Fee | $2,000 | $2,000 |
| Real Estate Leasing | $25,000 | $56,250 |
| Opening Inventory, Smallwares and Supplies | $15,000 | $25,000 |
| Initial Marketing and Promotion | $10,000 | $10,000 |
| Insurance | $7,500 | $15,000 |
| Training Expenses | $1,000 | $14,000 |
| Miscellaneous Opening Costs | $1,300 | $3,600 |
| Business Licenses | $500 | $5,000 |
| Security Deposits | $4,000 | $10,000 |
| Additional Funds (three months) | $12,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Franchise Agreement: 50% of our then-current initial franchise fee; License Agreement: 50% of the then-current initial license fee. |
| Renewal Fee | Franchise Agreement: 10% of the then-current initial franchise fee; License Agreement: 10% of the then-current initial license fee, or $1,250, whichever is more. |
| Technology Fee | System Support Fees and Approved Software Fees (Franchised Restaurants only) for legacy POS system: $300 - $500 per Month; System Support Fees (Franchised Restaurants only) for subscription-based system: $200 - $300 per Month |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs. |
| Grand Opening Marketing Program | $10,000 under the Franchise Agreement |
| Interest on Overdue Amounts | 1.5% per month on the underpayment |
| Late Fee (License Agreement) | 15% of amount due, plus any bank charges |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Supplier Testing | Will vary |
| Indemnity | Will vary under circumstances |
| Reinspection Fee | An amount not to exceed $1,500 |
| Securities Offering Fee | $7,500 or our actual expenses, whichever is more |
| Additional training and Onsite Assistance | $350 per trainer per day, plus our per-diem charges and our out-of-pocket costs |
| Additional and Replacement Certified Manager Personnel Training | $1,600 under the Franchise Agreement, and $850 under the License Agreement, for each additional individual to be trained; Our personnel's wages, per diem charges, and travel, hotel, and living expenses under the License Agreement. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately four-week period for franchise; approximately six-day period for licensee |
| Classroom Training | Franchise: 50; License: 20 |
| On-the-Job Training | Franchise: 268; License: 40 |
| Training Location | Franchise: Certified Training Location; License: Lakewood, Colorado, or at a designated training store |
| Additional Training | We may conduct additional training programs if we think your Restaurant will benefit from that. If you ask that we provide additional on–site training, and we are able to do so, then you will pay us $350 per person to be trained per day plus our then–current per diem charges and out–of–pocket expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Territory (Franchise Agreement); Non-exclusive (License Agreement) |
| Exclusive Territory | Yes |
| Territory Size | typically two miles, except in dense urban centers, where it could be less |
| Description | The Protected Territory will typically be a circle, the center of which will be the front door of the Restaurant, and that circle will have a radius that is specified in your Franchise Agreement (typically two miles, except in dense urban centers, where it could be less). For License Agreements, no protected territory is granted. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Franchise Agreement: earlier of 10 years from Restaurant opening or 11 years from effective date; License Agreement: 5 years from effective date, or 10 years for airport locations. |
| Renewal Term | Franchise Agreement: one additional 10-year term; License Agreement: two additional five-year terms, and one additional 10-year term for airport locations. |
| Renewal Fee | Franchise Agreement: 10% of the then-current initial franchise fee; License Agreement: 10% of the then-current initial license fee, or $1,250, whichever is more. |
| Renewal Conditions | Notice, satisfaction of monetary obligations, compliance with Franchise Agreement, release, pay fee, sign new Franchise Agreement, and others; new agreement may contain materially different terms and conditions. |
| Transfer Fee | Franchise Agreement: 50% of our then-current initial franchise fee (capped at $50,000 or reasonable out-of-pocket costs for multiple transfers, or out-of-pocket costs only for transfers to spouse/son/daughter or upon death/incapacity); License Agreement: 50% of the then-current initial license fee. |
| Transfer Conditions | Transferor executes general release, transferee designated as Principal and signs agreement, new Principals meet standards (educational, managerial, business, moral character, credit rating, aptitude, financial resources), new area development agreement if change in control, transferor remains liable for pre-transfer obligations, new Operating Partner/Certified Managers complete training, pay transfer fee. |
| Termination for Cause | Default under the Franchise Agreement, Development Agreement or License Agreement, bankruptcy, abandonment, conviction of felony, threat to public health/safety, unauthorized transfer, failure to comply with non-compete, disclosure of confidential info, false books/reports, selling unapproved products, fraudulent/deceptive practices, unauthorized catering, improper use of Proprietary Marks, multiple defaults. |
| Non-Compete Period | Franchise Agreement: During the term and for 2 years after expiration/termination; License Agreement: During the term and for 1 year after expiration/termination. |
| Non-Compete Details | Prohibition on engaging in a “Competitive Business,” defined as a retail business selling or offering bagels, cream cheese, and/or coffee products that constitute 30% or more of gross revenues. For Franchise Agreement, applies within Protected Territory or 10 miles of any other System restaurant. For License Agreement, applies within the same food court or 100 yards of the Restaurant, or adjacent to restaurants operated under Other Brands. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The Franchise Agreement and License Agreement do not require you to participate personally in the direct operation of the Restaurant, although we encourage and recommend active participation by you. We do, however, require that you and/or your Certified Manager(s) devote full time, energy, and best efforts to the management of the Restaurant. |
| Required Suppliers | You must buy all Proprietary Items, Products, ingredients, supplies, materials, and other products used or offered for sale at the Restaurant only from suppliers (including manufacturers, distributors, and other sources) that we have approved in writing. |
| Supply Restrictions | We have the right to designate only one supplier for certain items (such as distribution of products, soft drinks, etc.) in order to take advantage of marketplace efficiencies. You must buy all of your requirements for bagels, sweets and baked goods, shakes, blended drinks, cookies, cream cheese, cream cheese spreads, coffee, coffee beans, and paper and plastic goods bearing the Proprietary Marks (“Proprietary Items”) only from us, our affiliate, our parent company, or from our designee(s). |
| Franchisor Revenue from Suppliers | $3,186,026 |
Einstein Bros. Bagel Franchise Earnings — Item 19
Average Revenue
$885K
Median Revenue
$873K
Revenue Range
$266K – $1.7M
Sample Size
52 units
Past financial performance does not guarantee future results. Individual results will vary.
Einstein Bros. Bagel Litigation & Risk Flags
Clean Litigation RecordEinstein Bros. Bagel has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Einstein Bros. Bagel System Growth
Total Units
376
Franchised
54
Company-Owned
322
Einstein Bros. Bagel currently operates 54 franchised locations and 322 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 7 | 52 |
| 2020 | 1 | 1 | 53 |
| 2021 | 2 | 1 | 54 |
| 2019 | 40 | 4 | 353 |
| 2020 | 1 | 7 | 337 |
| 2021 | 1 | 20 | 319 |
Transfers: 1 | Closures: 1
State Registrations
Registered in 14 states: CA, NY, HI, ND, IL, RI, IN, SD, MD, VA, MI, WA, MN, WI
Franchisor Financials (Item 21)
Revenue
$857.5M
Net Income
$36.0M
Total Assets
$1369.7M
Audited by Grant Thornton LLP for year ending December 28, 2021.
Einstein Bros. Bagel Franchise — FAQ
The total investment to open a Einstein Bros. Bagel franchise ranges from $564,300 to $935,850, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Einstein Bros. Bagel charges a royalty fee of 5% of Gross Sales (Franchise Agreement); 6.5% of Gross Sales (License Agreement, reduced to 4% for airport locations) of gross sales, plus a 4% of Gross Sales under the Franchise Agreement contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Einstein Bros. Bagel Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Einstein Bros. Bagel to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Einstein Bros. Bagel franchise owners report average revenue of $885K and median revenue of $873K. This is based on a sample of 52 units. Past performance does not guarantee future results.
Einstein Bros. Bagel has been franchising since 2006. The FDD shows an investment range of $564,300-$935,850, a 5% of Gross Sales (Franchise Agreement); 6.5% of Gross Sales (License Agreement, reduced to 4% for airport locations) royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $564,300 to $935,850 depending on location size and market. A minimum of $12,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Einstein Bros. Bagel and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Einstein Bros. Bagel or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com