What is the total range of the estimated initial investment for a Brueggers Bagels franchise, considering the initial franchise fee in Item 5 and the other expenditures listed in Item 7?
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.
- (3) We expect that you will lease a location for the Franchised Bakery, which will vary in size between 2,100 to 2,700 square feet, generally for a facility located in a suburban mall, strip center, or mixed use development. We will consider on a case-by-case basis a franchisee's request to convert an existing facility to a Bakery, as well as sites that may be larger or smaller than our proto-type, provided that the site can be transformed to meet the standards and specifications of the System. The cost of purchasing or leasing and developing a suitable site varies widely depending on the size, type, and location of the Bakery and the local real estate market.
- (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. 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;
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the estimated initial investment for a franchised bakery ranges from $693,800 to $1,227,150. This total includes various expenditures, such as the initial franchise fee of $35,000, real property costs estimated between $25,000 and $56,250, and design and permitting fees ranging from $36,000 to $79,000. Building and leasehold improvements account for a significant portion of the investment, with costs ranging from $278,000 to $508,000. Other notable expenses include signage ($21,000 to $103,000), furniture, fixtures, and equipment ($222,800 to $272,900), and a technology suite ($24,000 to $42,000). These costs cover the establishment of a new Brueggers Bagels bakery.
Prospective franchisees should note that these costs are estimates and can vary based on location, size, and specific circumstances. For example, real property costs depend heavily on the local real estate market, and building improvements depend on the condition of the premises. The FDD also specifies additional potential costs, such as tap/pro-rata fees for water and sewer usage, which are not included in the design and permitting fees estimate. It is crucial for franchisees to conduct thorough due diligence and consult with local authorities to understand all potential costs involved in establishing a Brueggers Bagels franchise.
Additionally, the initial investment includes startup inventory and supplies ($10,000 to $14,000), grand opening advertising ($10,000), insurance ($3,000 to $5,000), utility deposits and licenses ($3,000 to $5,000), legal and accounting fees ($5,000 to $30,000), and training expenses ($6,000 to $12,000). The estimate also factors in additional funds needed for the first three months of operation, ranging from $15,000 to $45,000, to cover expenses like rent, payroll, and utilities. However, these additional funds do not include royalties, marketing contributions, or the franchisee's compensation. Brueggers Bagels based this estimate on the experience of its company-owned bakeries.
For a Licensed Bakery, the total estimated initial investment ranges from $689,592 to $1,168,400. This includes an initial license fee of $12,500, real property costs between $8,750 and $45,000, design and permitting fees from $36,000 to $79,000, and building and leasehold improvements ranging from $400,000 to $550,000. Other costs include signage ($21,000 to $50,000), furniture, fixtures & equipment ($149,342 to $272,900), and a technology suite ($24,000 to $42,000). Like the franchised bakery, these figures are estimates and can vary. Franchisees should carefully review all components of the initial investment and seek professional advice to ensure they have sufficient capital to launch and sustain their Brueggers Bagels business.