Risk Score
Pending analysis
Investment Range
$660,110 - $1,020,860
Franchise Fee
$30,000
Total US Locations
6
Business Summary
H&H Bagels operates a retail restaurant under the H&H Bagels brand, offering authentic, fresh-baked bagels, signature spreads, smoked fish, and prepared salads. These items are available for take-out, dine-in, or delivery. The H&H Bagels brand uses its original, signature bagel recipe, with franchisees receiving par-baked bagel products that require baking on-site.
Corporate History
H&H Bagels Franchising LLC was formed as a New York limited liability company on May 6, 2021. The H&H Bagels brand itself has a long history, with its original, signature bagel recipe being used since the brand launched in 1972 in New York City. The franchisor's parent company, H&H Bagels Group, Inc., was formed in March 2020. An affiliate, Marks Bakery LLC, formed in December 2019, owns the proprietary marks and licenses them to H&H Bagels Franchising LLC. Another affiliate, Midtown Bakery LLC, formed in September 2021, acts as the wholesale supplier of bagels for the System. H&H Bagels Franchising LLC began offering franchises in September 2021.
Financial Overview
Investment Range
$660,110 - $1,020,860
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$40,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$505,000
Equipment Costs (High)
$785,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for H&H Bagels Franchising LLC, as of December 31, 2024, show a negative member's equity of $295,396. This financial condition raises questions about H&H Bagels Franchising LLC's ability to provide services and support to its franchisees. This is highlighted as a special risk in the Franchise Disclosure Document.
Financing Details
H&H Bagels Franchising LLC does not offer any direct or indirect financing to franchisees, nor does it guarantee any notes, leases, or obligations for them. Franchisees are responsible for securing their own funding through third-party lenders.
Performance Metrics
Total US Locations
6
Franchised Units
1
Corporate Units
5
Avg Square Footage
1,650
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
H&H Bagels Franchising LLC has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means H&H Bagels Franchising LLC has not been involved in any material litigation, including administrative, criminal, or civil actions, within the specified disclosure period.
Bankruptcy History
H&H Bagels Franchising LLC reports no bankruptcy information for the franchisor, its predecessors, affiliates, or any officers and directors in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, H&H Bagels franchisees must provide timely written notice (18-24 months before term end), be in substantial compliance with all agreements, renovate and modernize their restaurant to current brand standards, satisfy all monetary obligations to the franchisor and suppliers, and not have more than one uncured material breach, one payment breach in any 24-month period, or one infringing use in any 24-month period. They must also have the right to possess the premises, maintain all necessary licenses and permits, not have material health code violations in the prior 36 months, sign the franchisor's then-current franchise agreement (which may have different terms), execute a general release of claims against the franchisor, comply with current qualification and training requirements, and pay a renewal fee equal to 25% of the then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
Before opening, H&H Bagels Franchising LLC assists franchisees by approving proposed sites (within 30 days of receiving information) and providing standard design plans. It also conducts initial training (for a fee of $5,000, with franchisees responsible for their own expenses) and lends a copy of the confidential Manuals after training. The franchisor provides a list of initial equipment specifications and a template for reporting sales, payroll, and inventory. After opening, H&H Bagels Franchising LLC reviews and approves franchisee advertising materials, conducts inspections of operations, and provides advice and written materials on cooking, cleaning, storage, product preparation, new recipes, and business operations. It also administers the Brand Fund for advertising and marketing, designates or approves suppliers, and may set maximum and minimum product prices.
Initial Training Hours
80
Training Location
Franchisee's location and virtual
Ongoing Support
After opening, H&H Bagels Franchising LLC provides advice and written materials on cooking, cleaning, storage methods, product preparation, new recipes, customer service, and business operations. It also conducts inspections of the restaurant's operation and administers the Brand Fund for advertising and promotion. Franchisees are required to attend conventions, regional meetings, and conferences as specified by H&H Bagels Franchising LLC, for which fees may apply. The franchisor also reserves the right to require additional training courses, seminars, and programs for franchisees and their personnel, for which a per diem training fee and other expenses would be charged to the franchisee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staffing Notes
H&H Bagels Franchising LLC requires that the franchisee (or one of its owners) or a designated manager who has completed the initial training program must devote full-time efforts to managing the franchised business. This individual must be on-site and operating the restaurant during peak hours, as specified by the franchisor. The franchisee must also maintain a competent, conscientious, and trained staff, including managers who have completed the required training. Franchisees are solely responsible for all employment decisions and functions, such as hiring, firing, training, wages, and record-keeping, and must ensure employees provide good customer relations and meet minimum standards, including attire. The franchisor retains the right to approve all individuals attending training programs. The restaurant must always be under the direct, on-premises supervision of an individual who has satisfactorily completed specified training.