What is the initial franchise fee for a Big Apple Bagels BAGELS Satellite Store?
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) | $15,000 | Lump Sum | When you sign the Franchise Agreement | BAB |
| Store Opening Marketing | $3,000 | Lump Sum | Upon signing | BAB (BAGELS |
| Fee(2) | Franchise Agreement | Marketing Fund) | ||
| Professional Fees(3) | $4,000-$8,000 | As agreed | As incurred | Professionals |
| First Month's Rent and | $4,000-$8,000 | As agreed | As agreed in lease | Lessor |
| Security Deposit(4) | in lease | |||
| Insurance(5) | $4,000-$8,000 | Lump Sum | As incurred | Insurance Company |
| Leasehold Improvements(6) | $130,000 - $217,000 | As agreed | As incurred | Suppliers |
| Exterior and Interior | $5,000 - $10,000 | As agreed | As incurred | Designated |
| Signage and Display (7) | Supplier | |||
| Furniture, Fixtures, | $124,000-$190,000 | As agreed | As incurred | Approved |
| Equipment, (8) | Suppliers | |||
| Training(9) | $0 - $4,000 | As incurred | Before Opening | Hotels; Transportation Lines; Restaurants |
| Prepaid Expenses, | $500 - $1,500 | Lump Sum | As incurred | Third Parties |
| Deposits(10) | ||||
| Opening Inventory, | $7,000-$14,000 | As agreed | As incurred | Approved |
| Supplies(11) | Suppliers | |||
| Vehicle(12) | $2,000 - $20,000 | As agreed | As incurred | Third Parties |
| Additional Funds - 3 | $8,000-$15,000 | Varies | As incurred | Third Parties |
| months(13) | ||||
| TOTALS | $306,500-$513,500 |
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 initial franchise fee for a BAGELS Satellite Store is $15,000. This fee is paid as a lump sum when the Franchise Agreement is signed with Big Apple Bagels. However, if the franchisee is signing the Franchise Agreement under an Area Development Agreement, the initial franchise fee is $10,000.
This initial franchise fee grants the franchisee the right to operate a Big Apple Bagels Satellite Store, and it covers Big Apple Bagels' initial costs in setting up the franchise. It is a one-time fee. Franchisees should note the distinction between the standard franchise agreement and an area development agreement, as this impacts the fee amount.
In addition to the initial franchise fee, new franchisees should be aware of other initial costs, such as the Store Opening Marketing Fee, professional fees, rent and security deposits, insurance, leasehold improvements, signage, furniture, training, prepaid expenses, and opening inventory. These costs can range from $306,500 to $513,500. Therefore, prospective franchisees need to ensure they have sufficient capital to cover all these initial investments.