What is the estimated maximum cost for training when opening a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
VESTMENT**
BAB Production Store Franchise
| Type of Expenditure | Estimated Amount or Estimated High-Low Range | Method of Payment | When Due | To Whom Paid | |
|---|---|---|---|---|---|
| Initial Franchise Fee (1,2) | $25,000 | Lump Sum less Franchise Fee Deposit paid | When you sign the Franchise Agreement | BAB | |
| Store Opening Marketing Fee(3) | $7,500 | Lump Sum | Upon signing Franchise Agreement | BAB (BAGELS Marketing Fund) | |
| Professional Fees(4) | $5,000 - $10,000 | As Agreed | As incurred | Professionals | |
| First Month's Rent and Security | $4,000 - $9,000 | As agreed in | As agreed in lease | Lessor | |
| Deposit(5) | lease | ||||
| Insurance(6) | $5,000-$9,000 | Lump Sum | As incurred | Insurance Company | |
| Leasehold Improvements(7) | $170,000 - $292,000 | As agreed | As incurred | Suppliers | |
| Exterior and Interior Signage | $6,000 - $12,000 | As agreed | As incurred | Designated | |
| and Display (8) | Supplier | ||||
| Furniture, Fixtures, Equipment | $226,000 - $270,000 | As agreed | As incurred | Approved | |
| (9) | Suppliers | ||||
| Training(10) | $2,000 - $5,000 | As incurred | Before Opening | Hotels; Transportation Lines; Car; Restaurants | |
| Prepaid Expenses, Deposits(11) | $500 - $1,500 | Lump Sum | As incurred | Third Parties | |
| Opening Inventory, Supplies(12) | $15,000-$23,000 | As agreed | As incurred | Approved Suppliers | |
| Additional Funds - 3 months(13) | $12,000 - $18,000 | Varies | As incurred | Third Parties | |
| TOTALS | $478,000-$685,000 | Except for the Franchise Fee Deposit, the payments in the table above are non-refundable. The refundability of the Franchise Fee Deposit under the Preliminary Agreement is as follows: If you submit at least 1 site to BAB within the 60 days, but the site is not approved, BAB will refund all but $3,000 of the deposit. If you fail to submit even 1 site to BAB within the 60 days, you will not be entitled to a refund of any of the deposit. If you locate a site and sign a Franchise Agreement, the $10,000 deposit will be applied toward the initial franchise fee. If you locate a site and it is approved by BAB within the 60 days but you fail to sign a Franchise Agreement within 14 days of the approval, BAB may terminate the Preliminary Agreement and you will not be entitled to any refund of the $10,000 deposit. |
Neither BAB nor any affiliate finances part of the initial investment.
NOTES:
(1, 2) Initial Franchise Fee. The initial franchise fee is $25,000. If you enter into a Preliminary Agreement, you must pay BAB a deposit in the amount of $10,000. If you ultimately sign a Franchise Agreement, you must pay BAB the balance of the applicable initial franchise fee at the time you sign the Franchise Agreement. You must sign the Franchise Agreement within 14 days after we approve your site, or we may terminate the Preliminary Agreement. See Item 5 concerning the refund of your deposit. The $25,000 is for your first Franchise Agreement; if you sign more than 1 Franchise Agreement, the franchise fee is $20,000 for your 2nd and subsequent BAGELS Production Stores.
If you are a Developer, for each subsequent store developed under an Area Development Agreement, the franchise fee is $15,000 for your 2nd and subsequent BAGELS Production Stores.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–34)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the estimated cost for training ranges from $2,000 to $5,000 for a Production Store and $0 to $4,000 for a Satellite store. This cost covers expenses incurred before opening, such as hotels, transportation, and meals. Big Apple Bagels does not charge an additional fee for the initial training itself. The franchisee is responsible for covering the costs of transportation, meals, and lodging for two people while attending the training program. The actual amount will vary depending on the chosen transportation method, potential airfare costs, whether a car is rented, and the type of accommodations selected.
For a Satellite store, the low range of $0 applies to existing franchisees who have demonstrated proficiency in operating their Production Store and do not require in-person training at the Big Apple Bagels Training Facility. This is a notable benefit for existing franchisees looking to expand with a Satellite location, as it can significantly reduce their initial investment costs.
Prospective franchisees should carefully consider these training expenses when evaluating the overall initial investment required to open a Big Apple Bagels franchise. It's important to factor in potential travel and accommodation costs based on their specific circumstances and location. Understanding these costs upfront will help in accurate financial planning and budgeting for the new business venture.