Are the estimated initial costs for a Brueggers Bagels franchise based on an airport location?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT]
Explanatory Notes – Licensed Bakery:
- (1) The estimated costs are for an airport location. Except as indicated, these fees are not refundable. We do not finance your investment.
- (2) These amounts are discussed in detail in Item 5. The initial license fee must be paid when the License Agreement is signed. Please see the information provided above in Item 5 regarding the Development Agreement. If you have also signed a Development Agreement, and you are in compliance with your obligations under the Development Agreement and all of your License Agreements, then we will apply a credit from your development fee toward the initial license fee. The amount of the credit will be $10,000 for each Licensed Bakery you agree to develop. Unless otherwise agreed, the minimum number of Licensed Bakeries you will be required to develop is two. Item 5 for more details.
- (3) We expect that Licensed Bakery will vary in size between 600 and 1,500 square feet.
- (4) This range is representative of architectural design fees and building permit cost only and is only an average estimate. Additional construction fees such as tap/pro-rata fees, the costs of which are distributed to participants based on the authority of each city for items such as water and sewer usage fees, meter fees, environmental impact fees, electrical service fees, utility deposit fees, etc. and liquor license fees are not included. You should contact your state and local governmental agencies to inquire as to the amount and requirements of these items. This range applies only to the average locality; however, some areas operate under a quota system for permits and the costs associated with obtaining a license in these areas can be extremely expensive and time consuming. Other permits may be required before you may open your Licensed Bakery.
- (5) The estimate is for a Licensed Bakery developed in a host facility with the premises delivered in "vanilla box" condition (that is, primed drywall ready to be painted, but without improvements). Typical improvements required include floor covering, wall
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the estimated initial costs for a Licensed Bakery are based on an airport location. The document specifies that these costs are tailored for a Licensed Bakery developed within a host facility, assuming the premises are delivered in a "vanilla box" condition, meaning they have primed drywall ready for painting but lack improvements. This is in contrast to a typical Franchised Bakery, which is developed in a suburban shopping center, also with premises delivered in "vanilla box" condition.
For a Franchised Bakery, typical improvements include floor covering, wall covering, electrical modifications, partitions, installation of heating and cooling systems, painting, and lighting. The FDD notes that for the first two Bakeries, franchisees must engage a qualified architect from Brueggers Bagels' approval list to prepare architectural and engineering drawings. They must also retain a professional construction manager and use approved general contractors and equipment providers.
For franchisees considering a Licensed Bakery, understanding that the initial cost estimates are based on an airport location is crucial for financial planning. Airport locations often have unique requirements and higher costs due to security, specific construction standards, and operational logistics. Therefore, prospective franchisees should carefully review these estimates and factor in any additional expenses that may arise due to the specific conditions of their chosen location.