Einstein Bros Bagels Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$555,000 - $1,030,500
Franchise Fee
$25,000
Total US Locations
689
Business Summary
Einstein Bros. Bagels operates restaurants that specialize in selling fresh-baked bagels, cream cheese, and various spreads, alongside specialty coffees, teas, baked sweets, snacks, and creative lunch items. These Einstein Bros. Restaurants offer a diverse menu for both on-premises dining and carry-out, maintaining a distinctive interior and exterior design and utilizing specific operational procedures. They also offer proprietary and non-proprietary items.
Corporate History
Einstein Bros. Bagels Franchise Corporation was incorporated on February 8, 2016, operating under the Einstein Bros. Bagels, Noah's New York Bagels, and Noah's Bagels names. The company, along with its predecessor, Einstein and Noah Corp. (ENC), has offered franchises for Einstein Bros. Restaurants since 2006. The brand's history dates back to before 1995, with a predecessor entity, Einstein/Noah Bagel Corp. (ENBC), operating Einstein Bros. restaurants from 1995 to 2001. ENC acquired the Einstein and Noah Restaurant System in 2001. The franchisor's ultimate corporate parent, Einstein Noah Restaurant Group, Inc. (ENRG), was initially incorporated in 1992 as World Coffee, Inc. In 2014, JAB Holding Company acquired ENRG and its subsidiaries.
Financial Overview
Investment Range
$555,000 - $1,030,500
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
4%
Equipment Costs (Low)
$200,000
Equipment Costs (High)
$325,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Caribou Coffee Company, Inc., the guarantor for Einstein Bros. Bagels, shows a healthy financial position with an unqualified audit opinion for its consolidated financial statements for the fiscal years ending December 31, 2024, December 26, 2023, and December 27, 2022. The company consistently reported positive net income, with $57.7 million in 2024, $59.5 million in 2023, and $50.2 million in 2022. Operating income was $77.0 million in 2024, $89.7 million in 2023, and $77.0 million in 2022. The company also generated positive net cash from operating activities, amounting to $94.4 million in 2024, $107.0 million in 2023, and $105.1 million in 2022. Management and auditors did not identify any conditions or events that raise substantial doubt about the company's ability to continue as a going concern.
Financing Details
Einstein Bros. Bagels does not offer any direct or indirect financing to franchisees, nor does it guarantee any notes, leases, or other obligations. Franchisees must arrange their own financing from third-party sources.
Performance Metrics
Total US Locations
689
Franchised Units
63
Corporate Units
352
Avg Square Footage
1,850
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Einstein Bros. Bagels has no reportable litigation. Item 3 of the FDD states that no litigation is required to be disclosed for the franchisor or its key personnel.
Bankruptcy History
Einstein Bros. Bagels has no bankruptcy history to disclose. Item 4 of the FDD states that no bankruptcy information is required to be disclosed for the franchisor or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Einstein Bros. Bagels franchisees must provide written notice between nine and twelve months before the current agreement expires. They are required to remodel and refurbish their restaurant to meet the then-current standards for new Einstein Bros. Restaurants. Franchisees must also be in substantial compliance with all terms of their existing agreement, including timely payment of all financial obligations to Einstein Bros. Bagels, its affiliates, marketing funds, and vendors. A renewal fee, equal to 10% of the then-current initial franchise fee, is due, and franchisees must sign Einstein Bros. Bagels' then-current standard form of franchise agreement, which may contain different terms and conditions. Additionally, franchisees and their personnel must meet current qualification and training requirements, and a mutual general release must be signed.
Training & Support Program
Franchisor Assistance
Einstein Bros. Bagels provides a range of assistance to its franchisees. Before opening, the company offers a standard Certified Manager training program for up to two individuals, covering instruction and materials. It may also provide prototype plans and specifications for restaurant construction and design, though franchisees are responsible for hiring their own architect and contractor. Einstein Bros. Bagels inspects and approves the restaurant before opening and may provide on-site staff training assistance. Franchisees receive access to confidential operating manuals and help developing their Grand Opening Marketing Program (at the franchisee's expense). Ongoing support includes potential additional training programs and periodic advisory assistance on the restaurant's operation and promotion, as well as administering the Systemwide Marketing Fund.
Initial Training Hours
318
Training Location
Certified training locations across the U.S.
Ongoing Support
After opening, Einstein Bros. Bagels may conduct additional training programs for franchisees if deemed beneficial. The company provides periodic and continuous advisory assistance on restaurant operations and promotion. Franchisees also benefit from the administration of the Systemwide Marketing Fund. Additional training materials are provided electronically as needed, such as for new products or menus.
Franchise Requirements
Ideal Candidate Profile
Einstein Bros. Bagels primarily seeks qualified individuals and companies interested in Area Development Agreements to develop and operate multiple restaurants. Ideal Operating Partners are expected to have a good business reputation in the restaurant industry with multi-unit experience, while Store Managers require single-site general management experience. All key personnel, including Operating Partners, Store Managers, and Certified Managers, must be approved by Einstein Bros. Bagels, be non-competitors, successfully complete the training program, and be able to speak English.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
3
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Einstein Bros. Bagels typically defines a protected territory as a circle with a two-mile radius, centered at the front door of the restaurant. In dense urban areas, this radius may be smaller. However, this protected territory does not apply to non-traditional facilities or captive market locations, which may still be established within or outside this area.
Staffing Notes
Einstein Bros. Bagels requires its restaurants to maintain a competent, trained staff sufficient to serve customers promptly. At least one manager must be on duty at all times. The restaurant must operate under the active full-time management of either the franchisee, an Operating Partner, or a Certified Manager. All managers must pass operations and proficiency tests and successfully complete the Certified Manager training program. Store Managers are specifically required to have at least three years of experience in a management role within a quick-service or fast-casual restaurant. Additionally, employees must adhere to prescribed dress codes and personal appearance standards.