What is the estimated range for design and permitting fees for a Brueggers Bagels franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
pay us the fee indicated.
ITEM 7 ESTIMATED INITIAL INVESTMENT
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Initial Franchise Fee (Note 2) | $35,000 | Lump sum | Upon signing the Franchise Agreement | Us | |
| Real Property | $25,000 to | As Arranged | As Arranged | Lessor | |
| (Note 3) | $56,250 | ||||
| Design, Permitting Fees (Note 4) | $36,000 to $79,000 | As Arranged | As Incurred | Contractors and Government Agencies | |
| Building and Leasehold Improvements (Note 5) | $278,000 to $508,000 | As Arranged | As Incurred | Contractors and Vendors | |
| Signage (Note 6) | $21,000 to $103,000 | As Arranged | As Incurred | Vendors | |
| Furniture, Fixtures & Equipment (Note 7) | $222,800 to $272,900 | As Arranged | As Incurred | Vendors | |
| Site Work (Note 8) | $0 to $10,000 | As Arranged | As Incurred | Vendors | |
| Technology Suite | $24,000 to | As Arranged | As Incurred | Vendors | |
| (Note 9) | $42,000 | ||||
| Start-up Inventory & Supplies (Note 10) | $10,000 to $14,000 | As Arranged | As Incurred | Distributors, us, or our affiliates | |
| Grand Opening Advertising (Note 11) | $10,000 | As Arranged | As Arranged | Vendors, Printers, Media | |
| Insurance (Note 12) | $3,000 to $5,000 | As Arranged | As Arranged | Insurance Company | |
| Utility Deposits & Licenses (Note 13) | $3,000 to $5,000 | Lump Sum | As Incurred | Utility Companies, Governmental Agencies | |
| Legal and Accounting (Note 14) | $5,000 to $30,000 | As Arranged | As Incurred | Attorney, Accountant | |
| Training (Note 15) | $6,000 to $12,000 | As Arranged | As Incurred | Employees, Hotels, Airlines, Vendors, etc. | |
| YOUR ESTIMATED INITIAL INVESTMENT | |||||
| Franchised Bakery | |||||
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment is to be Made | |
| Additional Funds – 3 months (Note 16) | $15,000 to $45,000 | As Arranged | As Incurred | Vendors, Suppliers, Employees, Utilities, Landlord, etc. | |
| Total | $693,800 to $1,227,150 | # Explanatory Notes – Franchised Bakery: |
- (1) The estimated costs for a Franchised Bakery are based on open shop bidding practices with no premium built in for the cost of union labor. The estimated costs are for a new Bakery. 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 franchise fee must be paid when the Franchise 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 Franchise Agreements, then we will apply a credit from your development fee toward the initial franchise fee. The amount of the credit will be $10,000 for each Bakery you agree to develop. Unless otherwise agreed, the minimum number of Bakeries you will be required to develop is two. Item 5 for more details.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the estimated cost for design and permitting fees ranges from $36,000 to $79,000 for a franchised bakery. These fees are paid as incurred to contractors and government agencies. This estimate is representative of architectural design fees and building permit costs 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, and utility deposit fees are not included in this estimate. Franchisees should contact their state and local governmental agencies to inquire about the amounts and requirements of these additional fees.
Furthermore, the FDD notes that some areas operate under a quota system for permits, which can make obtaining a license extremely expensive and time-consuming. Other permits may also be required before opening the bakery, so prospective franchisees should factor in potential variations in these costs based on their specific location.