What were the franchise royalties and fees for Brueggers Bagels as of December 27, 2022?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
the Company's consolidated financial statements and disclosures.
2. Revenue
Disaggregation of Revenue
Financial information relating to our operations by line of business is as follows:
| Fiscal Year Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| December 31, | December 26, | December 27, | ||||||
| (in thousands) | 2024 | 2023 | 2022 | |||||
| Coffeehouse and bagel bakery sales | $ | 928,364 | $ | 859,563 | $ | 792,112 | ||
| Franchise royalties and fees | 29,393 | 26,126 | 23,426 | |||||
| Franchise advertising sales | 5,277 | 4,347 | 4,017 | |||||
| Product sales: | ||||||||
| Franchise | 41,390 | 45,763 | 38,870 | |||||
| Commercial |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the franchise royalties and fees for the fiscal year ended December 27, 2022, amounted to $23,426. This figure represents the total royalties and fees Brueggers Bagels collected from its franchisees during that period. It's important to note that this is a consolidated figure, reflecting the aggregate of all royalty and fee payments made by franchisees across the Brueggers Bagels system.
For a prospective franchisee, this number provides context regarding the scale of royalty and fee payments within the Brueggers Bagels franchise system. While it doesn't detail the specific royalty rate or fee structure that individual franchisees pay, it offers a general sense of the financial relationship between Brueggers Bagels and its franchisees. The FDD also mentions that monthly royalty payments range from 4% to 6% of gross sales under domestic franchise agreements. However, the document only specifies royalty revenue of approximately $0.1 million and $0.1 million was recorded during the fiscal years ended December 31, 2024 and December 26, 2023, respectively.
Understanding the total franchise royalties and fees, along with the royalty rate structure, is crucial for potential franchisees to assess the financial viability of a Brueggers Bagels franchise. It allows them to estimate their ongoing costs and evaluate the potential return on investment. Additionally, comparing this figure with those of previous years can reveal trends in the franchise's financial performance and the overall health of the franchise system.
It is important for prospective franchisees to review the specific terms outlined in the franchise agreement to fully understand the royalty and fee obligations. This includes clarifying the exact percentage of gross sales required for royalty payments, as well as any other fees that may be applicable, such as advertising fees or technology fees. Consulting with a financial advisor and an experienced franchise attorney is highly recommended to ensure a comprehensive understanding of the financial implications before investing in a Brueggers Bagels franchise.