Risk Score
Pending analysis
Investment Range
$603,225 - $1,164,500
Franchise Fee
$30,000
Total US Locations
4
Business Summary
The Bagel Nook operates restaurant locations that offer delicious, funky, and fun made-from-scratch bagels, including crazy toppings and bagel-based sandwiches, along with beverages and retail items. The Bagel Nook aims to provide a unique food experience in an enjoyable and distinctive environment.
Corporate History
The Bagel Nook Franchising LLC was established as a Limited Liability Company in New Jersey in February 2017. An affiliate company, THE BAGEL NOOK, LLC, has been operating a similar bagel business since 2015. The Bagel Nook Franchising LLC started offering franchise opportunities in 2019.
Financial Overview
Investment Range
$603,225 - $1,164,500
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$513,000
Equipment Costs (High)
$1,035,000
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Bagel Nook Franchising LLC's financial statements show positive net income of $92,027 for 2023, $11,063 for 2022, and $46,105 for 2021. The company's cash and cash equivalents were $155,619 at the end of 2023. A significant concern noted in the financial statements is that The Bagel Nook Franchising LLC does not carry general liability or workers' compensation insurance coverage and is not self-insured, which could expose the company to considerable risk. Additionally, in 2022, the company wrote off $11,402 in receivables from affiliated companies as bad debt, indicating uncollectible amounts from related entities.
Financing Details
The Bagel Nook Franchising LLC does not provide any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other obligations on behalf of franchisees. However, The Bagel Nook Franchising LLC may introduce franchisees to third-party financial sources and suppliers who might offer credit arrangements, but the franchisor does not earn income from these referrals.
Performance Metrics
Total US Locations
4
Franchised Units
3
Corporate Units
1
Avg Square Footage
1,900
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Bagel Nook Franchising LLC has no litigation to report. No lawsuits or legal disputes involving the franchisor or its management are required to be disclosed in this document.
Bankruptcy History
The Bagel Nook Franchising LLC has no bankruptcy history to report. No bankruptcy proceedings involving the franchisor or its management are required to be disclosed in this document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew a Bagel Nook franchise, franchisees must be in full compliance with their agreement and have had no more than three instances of default during the current term. Franchisees need to provide written notice at least six months before the current term expires. They must sign a new franchise agreement, which may have materially different terms, and pay a renewal fee of $5,000. Additionally, franchisees are required to maintain their location according to current trade dress and other brand standards, execute a general release, and comply with all then-current qualifications and training requirements, including any additional training mandated by The Bagel Nook Franchising LLC.
Training & Support Program
Franchisor Assistance
The Bagel Nook Franchising LLC provides extensive support both before and after a location opens. Pre-opening assistance includes approving the protected territory, providing the Operations Manual and online learning, listing required equipment and supplies, and offering initial training for up to three people at its Freehold, NJ location or another designated site. The Bagel Nook Franchising LLC also sends a trainer to the franchisee's location for up to one week during the grand opening, advises on construction and build-out, provides sample layouts, and approves the chosen location. After opening, The Bagel Nook Franchising LLC offers additional mandatory or optional training, including annual conferences. It can provide remedial on-site training (for a fee) and individualized assistance via phone, video, or email. The Bagel Nook Franchising LLC also supplies advertising and promotional materials, conducts inspections, provides equipment and supplier specifications, offers pricing advice, and approves all franchisee advertising.
Initial Training Hours
47
Training Location
Freehold, NJ
Ongoing Support
The Bagel Nook Franchising LLC offers ongoing support that includes mandatory or optional additional training programs and may require franchisees to attend annual business meetings or conferences for up to five days per year. Remedial on-site training and assistance can be provided at the franchisee's location upon request or as deemed appropriate, though this incurs a fee of $500 per trainer per day plus expenses. Individualized assistance is also available via telephone, video conference, email, or postal service within reasonable limits. Furthermore, The Bagel Nook Franchising LLC conducts inspections of franchised businesses to ensure adherence to standards.
Franchise Requirements
Ideal Candidate Profile
The Bagel Nook seeks franchisees who are willing to personally supervise their Bagel Nook business for at least the first six months of operation. After this initial period, franchisees must remain actively involved in overseeing the business, even if they appoint a General Manager. All principals, and any appointed General Managers, must successfully complete The Bagel Nook's initial training program.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
The Bagel Nook franchise territories are defined on an individual basis, specifically as a protected area surrounding the Bagel Nook location. These territories are determined using various demographic data, including total residential population, median home value, and median household income. The boundaries are further shaped by political lines, Zip Codes, natural geographical features, existing competition, and other factors deemed relevant by The Bagel Nook Franchising LLC.
Staffing Notes
The Bagel Nook Franchising LLC requires the franchisee or managing member to personally supervise the business for the first six months. After this period, a General Manager can be appointed, subject to the franchisor's approval, but the franchisee must remain actively involved in overseeing the business. Both the franchisee/principal(s) and any appointed General Manager must successfully complete the initial training program and any other required training courses. The franchisor provides initial training for the franchisee and up to two additional people as part of the initial fee, with additional employees able to be trained at a cost. Any manager or personnel with access to proprietary information must sign a Confidentiality and Non-Compete Agreement.