What is the estimated range for professional fees associated with opening a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 range for professional fees is between $5,000 and $10,000 for a standard store. These fees are paid as incurred directly to the professionals you employ. Big Apple Bagels indicates that franchisees will likely need to employ a local architect and may also choose to hire an attorney, accountant, or other consultants.
For a BAGELS Satellite Store, the estimated range for professional fees is slightly lower, ranging from $4,000 to $8,000. As with the standard store, these fees are paid as incurred to the professionals you engage. The need for these professionals stems from various aspects of setting up the franchise, such as architectural design, legal guidance, and financial advice.
It's important for prospective franchisees to budget accordingly for these professional fees, as they can vary based on the specific services required and the rates of professionals in their local area. Understanding the scope of services needed and obtaining quotes from multiple professionals can help in managing these costs effectively. These fees are non-refundable.