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Manhattan Bagel Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Manhattan Bagel Franchise?
To open a Manhattan Bagel franchise, you will need to prepare for an initial investment ranging from $537,200 to $894,700. This includes a franchise fee of $25,000. Additionally, potential franchisees must have a net worth between $500,000 and $750,000 to qualify. It's essential to consider not just the initial costs but also the ongoing royalty fee of 5% and a marketing fee of 2.5% to ensure you can sustain the business long-term.
What Are the Revenue Expectations for a Manhattan Bagel Franchise?
Manhattan Bagel franchises can expect average annual revenues of approximately $536,047, with a median of $488,644. However, revenue can vary significantly, with the lowest reported annual revenue at $173,094 and the highest reaching $1,868,765. Understanding these revenue dynamics can help potential franchisees assess the financial viability of their investment and set realistic sales goals.
What is the Breakeven Timeline for a Manhattan Bagel Franchise?
Franchisees of Manhattan Bagel can anticipate a breakeven time of around 24 months. This timeframe allows for initial setup costs and operational expenses to be covered by the revenue generated. Moreover, with an investment payback period of just 9 months, franchisees can look forward to recovering their initial investment relatively quickly, provided they effectively manage their operations and marketing.
What Are the Average Expenses for a Manhattan Bagel Franchise?
The average operating expenses for a Manhattan Bagel franchise are estimated at $124,927 annually, with total general and administrative expenses reaching approximately $413,803. This brings the total annual expenses to around $538,730. Understanding these costs is crucial for franchisees to maintain profitability and ensure their business remains financially healthy while delivering quality products to customers.
Manhattan Bagel Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Manhattan Bagel Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 63 | 64 | 64 |
| Net Change YoY | 1 | 0 | |
| Franchised Units | 63 | 64 | 64 |
| Net Change YoY | 1 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Franchise Overview
Manhattan Bagel is a well-known franchise chain specializing in freshly baked bagels, sandwiches, and coffee. Founded in 1987, it has established a strong presence in the fast-casual dining sector. With a focus on quality ingredients and a welcoming atmosphere, Manhattan Bagel aims to provide customers with a unique dining experience that highlights the flavors of New York-style bagels and deli fare.
Investment Requirements
The initial investment to open a Manhattan Bagel franchise ranges from $537,200 to $894,700, which includes a franchise fee of $25,000. Potential franchisees should be prepared to meet a net worth requirement of $500,000 to $750,000. This investment encompasses various costs such as equipment, signage, and initial inventory, making it essential for aspiring franchisees to conduct thorough financial planning.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $536,047, with a median revenue of $488,644. The revenue can vary significantly, with the lowest annual revenue reported at $173,094 and the highest at $1,868,765. Understanding these figures is crucial for potential investors to assess the profitability of their franchise investment.
Operational Expenses
Operating expenses for a Manhattan Bagel franchise are estimated to be around $180,000 annually, which accounts for approximately 33.6% of total revenue. The cost of goods sold (COGS) is roughly $278,024, making up about 51.9% of revenue. Franchisees must manage these costs effectively to maintain profitability and ensure sustainable operations.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 2.5%. These fees contribute to the overall support and brand recognition provided by the franchisor. Understanding these ongoing costs is essential for franchisees as they plan their financial strategies and marketing efforts.
Growth and Expansion
As of 2020, Manhattan Bagel operates a total of 64 franchised units, with no corporate-owned locations. The franchise has shown consistent growth, maintaining the same number of units from 2018 to 2020. This stability indicates a solid business model and potential for future expansion in new markets, making it an attractive option for prospective franchisees.
Frequently Asked Questions
The initial investment for a Manhattan Bagel franchise ranges from $537,200 to $894,700. This includes the franchise fee of $25,000 and other startup costs.