JEFF'S BAGEL RUN Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$497,558 - $813,790
Franchise Fee
$20,000
Total US Locations
11
Business Summary
JEFF'S BAGEL RUN operates stores that specialize in selling fresh-baked bagels, a variety of cream cheeses and other spreads, specialty coffees and teas, baked sweets, and snacks. The stores offer these products to consumers for on-site consumption and through limited mobile and third-party delivery services.
Corporate History
JBR Franchise Co was incorporated in Florida on March 13, 2023, and began offering JEFF'S BAGEL RUN franchises in October 2023. The JEFF'S BAGEL RUN concept was originally developed by Jeff and Danielle Perera in August 2019. Jeff Perera then formed Jeff's Bagel Run LLC in May 2020 and opened the first JEFF'S BAGEL RUN store in July 2021. The intellectual property associated with JEFF'S BAGEL RUN stores was acquired by TheBagel, LLC from the founders in March 2023, and then contributed to JBR Franchise Co. As of December 31, 2024, affiliated entities operate nine JEFF'S BAGEL RUN stores, while JBR Franchise Co focuses on franchising.
Financial Overview
Investment Range
$497,558 - $813,790
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$420,300
Equipment Costs (High)
$623,000
Working Capital
$71,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
JEFF'S BAGEL RUN has experienced significant operating losses, totaling $2,634,426 in 2024 and $774,150 in 2023, resulting in an accumulated deficit of $3,408,576. This financial condition raises substantial doubt about JEFF'S BAGEL RUN's ability to continue operations for a reasonable period. To address this, management and the Board of Directors have increased their revolving line of credit from $1,500,000 to $5,000,000 in February 2025. JEFF'S BAGEL RUN is also planning to open 29 new franchise locations in 2025, anticipating approximately $886,000 in royalty revenue, and has secured area development agreements for a total of 68 stores by 2027. JEFF'S BAGEL RUN's ability to fund its operations is dependent on the successful execution of these plans.
Financing Details
JEFF'S BAGEL RUN does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
11
Franchised Units
2
Corporate Units
9
Avg Square Footage
1,400
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
JEFF'S BAGEL RUN has no litigation to report in Item 3 of its Franchise Disclosure Document. However, Item 4 mentions that Franchise Group, Inc. (FRG), a company unrelated to JEFF'S BAGEL RUN but a former employer of Todd Evans, JEFF'S BAGEL RUN's Vice President of Franchising, voluntarily filed for Chapter 11 bankruptcy reorganization on November 3, 2024. FRG and some of its affiliates, including several franchise systems, are undergoing restructuring, with some operations continuing and one affiliate (American Freight) winding down. These proceedings are currently pending.
Bankruptcy History
JEFF'S BAGEL RUN itself does not have a bankruptcy history. However, Item 4 discloses that Franchise Group, Inc. (FRG), a company unrelated to JEFF'S BAGEL RUN, voluntarily filed for Chapter 11 bankruptcy reorganization on November 3, 2024. FRG was the former employer of Todd Evans, JEFF'S BAGEL RUN's current Vice President of Franchising. The proceedings involve FRG and some of its affiliates, including several franchise systems, seeking to restructure approximately 80% of its first-lien debt. Most of the Company's businesses continue to operate as debtors-in-possession under bankruptcy court supervision, while one affiliate, American Freight, is being wound down. The proceedings are currently pending in the U.S. Bankruptcy Court for the District of Delaware.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, JEFF'S BAGEL RUN franchisees must be in good standing, having complied with all obligations under their current Franchise Agreement and other agreements. They must not have committed three or more material defaults within any 36-month period. Franchisees are required to undertake remodeling and renovation to meet JEFF'S BAGEL RUN's then-current standards and comply with any updated training requirements. They must sign a general release and a new successor franchise agreement, which may have terms and conditions different from the original contract, and pay a renewal fee equal to 10% of JEFF'S BAGEL RUN's then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
Before opening, JEFF'S BAGEL RUN provides assistance with site review for proposed locations (the first three are free, subsequent reviews cost about $1,000). The franchisor offers design specifications for the store layout, fixtures, equipment, and decor, and requires franchisees to use approved architects (or pay a $2,500 review fee if using an unapproved architect) and general contractors. Initial training consists of approximately 80 hours over 10 days at JEFF'S BAGEL RUN's training facilities in Orlando, Florida, covering operations, food preparation, marketing, and customer service. Additionally, up to 10 days of on-site opening assistance is provided for the Operating Principal and Store Manager. After opening, JEFF'S BAGEL RUN offers additional assistance and advice upon reasonable request, though franchisees must reimburse expenses for extended on-site support. The franchisor periodically designates approved products and manages an advertising fund to promote the brand. Franchisees must use specified information systems, including a POS system, connected electronically to the franchisor. They also need to maintain a functioning email address on the franchisor's web hosting service (currently $150 yearly) and participate in designated Loyalty Programs. JEFF'S BAGEL RUN may require or offer additional training courses, for which separate fees and travel expenses may apply.
Initial Training Hours
80
Training Location
Orlando, FL
Ongoing Support
After opening, JEFF'S BAGEL RUN offers additional assistance and advice to its franchisees upon reasonable request, including sending a representative to the store (though franchisees must reimburse expenses and pay training charges for extended on-site support). The franchisor periodically designates Approved Products that must be stocked and sold. Franchisees are provided access to an optional Intranet system for communication and manual dissemination. JEFF'S BAGEL RUN approves or disapproves local advertising materials and programs. Franchisees must also use specified Information Systems, including a POS system, that are electronically linked to JEFF'S BAGEL RUN, allowing the franchisor to access and modify the systems. They are required to maintain a functioning email address on the franchisor's outsourced web hosting service (currently $150 yearly) and participate in designated Loyalty Programs. JEFF'S BAGEL RUN may require or offer additional training courses for franchisees, Operating Principals, and Store Managers, for which fees and travel expenses may apply.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
JEFF'S BAGEL RUN designates a site-specific territory for its franchisees, which will encompass an area with a population of at least 50,000 people. This territory is typically defined by a one-mile radius around the JEFF'S BAGEL RUN store in urban areas, or a three-mile radius in suburban areas. Alternatively, the territory may be described by specific zip codes, a map, or natural boundaries.
Staffing Notes
JEFF'S BAGEL RUN franchisees must directly supervise the business if they are an individual. If the franchisee is an entity, an Operating Principal, who has completed training and is acceptable to JEFF'S BAGEL RUN, must be designated to be principally responsible for communication and day-to-day operations. This Operating Principal must devote their full time and best efforts solely to operating the JEFF'S BAGEL RUN store and meet JEFF'S BAGEL RUN's educational, experience, financial, and other reasonable criteria. In all cases, a JEFF'S BAGEL RUN Store Manager and an adequate staff of fully trained employees are required. All personnel attending training must complete ServSafe certification and any other governmental certifications. Newly hired or replacement Operating Principals and Store Managers must be approved by JEFF'S BAGEL RUN and complete the initial training program to the franchisor's satisfaction. JEFF'S BAGEL RUN's Store Managers must have skill, training, and experience commensurate with the demands of the position, maintaining high standards of quality, courteous service, and cleanliness.