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The Great American Bagel Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Great American Bagel Franchise?
To open a Great American Bagel franchise, you can expect an initial investment ranging from $102,850 to $538,000. This includes a franchise fee of $20,000 and additional costs that may cover equipment, signage, and leasehold improvements. It's important to have cash reserves between $102,850 and $488,000 on hand to ensure you can cover startup expenses and operational costs during the initial phase.
What are the Ongoing Fees for Great American Bagel Franchisees?
Franchisees of Great American Bagel are required to pay a royalty fee of 4% on gross sales, along with a marketing fee of 2%. These fees contribute to the overall brand support and marketing initiatives that help drive customer traffic to your location. Understanding these ongoing financial commitments is crucial for budgeting and ensuring the long-term success of your franchise.
What are the Financial Performance Metrics for a Great American Bagel Franchise?
On average, a Great American Bagel franchise unit generates annual revenues of around $160,000, with a median revenue of $250,000. The lowest reported annual revenue is $81,000, while the highest can reach up to $1,250,000. Franchisees can expect to break even within approximately 12 months and achieve a return on their investment within 36 months, making it a potentially lucrative opportunity.
What are the Required Qualifications to Own a Great American Bagel Franchise?
To qualify for a Great American Bagel franchise, potential franchisees must have a net worth between $300,000 and $1,000,000. This financial requirement ensures that you have the necessary resources to support your business. Additionally, having a passion for the food service industry and a commitment to customer satisfaction can greatly enhance your chances of success in this competitive market.
The Great American 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:
The Great American Bagel Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2013 | 2014 | 2015 |
|---|---|---|---|
| Total Units | 69 | 67 | 65 |
| Net Change YoY | -2 | -2 | |
| Franchised Units | 66 | 64 | 60 |
| Net Change YoY | -2 | -4 | |
| Corporate Units | 3 | 3 | 5 |
| Net Change YoY | 0 | +2 |
Franchise Overview
The Great American Bagel is a fast-casual restaurant chain specializing in freshly baked bagels, sandwiches, and coffee. Founded with the vision of bringing authentic New York-style bagels to communities across the country, the franchise has established a strong presence in the market. With a commitment to quality ingredients and customer satisfaction, The Great American Bagel continues to expand its footprint, offering a unique dining experience for bagel enthusiasts.
Investment Details
To become a franchisee of The Great American Bagel, the initial investment ranges from $102,850 to $538,000, which includes a franchise fee of $20,000. Franchisees are required to maintain a cash reserve between $102,850 and $488,000, along with a net worth of $300,000 to $1,000,000. This investment structure is designed to ensure that franchisees are financially equipped to operate successfully in a competitive market.
Financial Performance
The average annual revenue per unit for The Great American Bagel is approximately $160,000, with a median revenue of $250,000. Units can generate revenues ranging from $81,000 to as high as $1,250,000. Franchisees can expect to reach breakeven within 12 months and achieve a return on their investment within 36 months, making it a potentially lucrative business opportunity for aspiring entrepreneurs.
Ongoing Fees
Franchisees are required to pay a royalty fee of 4% of their gross sales, along with a marketing fee of 2%. These fees contribute to the overall support and development of the brand, allowing franchisees to benefit from national marketing campaigns and operational assistance while maintaining a competitive edge in the marketplace.
Operational Support
The Great American Bagel provides comprehensive support to its franchisees, including training programs, marketing assistance, and operational guidance. Franchisees receive initial training and ongoing support to help them navigate the challenges of running a restaurant. This commitment to franchisee success ensures that each location adheres to the brand's standards and delivers a consistent customer experience.
Growth Potential
With a steady decline in the number of franchised units from 66 in 2013 to 60 in 2015, The Great American Bagel presents an opportunity for new franchisees to enter a market with growth potential. The brand is actively seeking motivated individuals to revitalize existing locations and expand into new territories. By leveraging the growing demand for quick-service dining options, franchisees can tap into a thriving market and contribute to the brand's resurgence.
Frequently Asked Questions
The initial investment for a Great American Bagel franchise ranges from $102,850 to $538,000, which includes the franchise fee and other startup costs.