6 Best Bagel Franchises in 2024

In 2024, the popularity of bagel franchises continues to rise, catering to the growing demand for fresh, convenient, and diverse breakfast options. Top bagel franchises are distinguishing themselves with innovative flavors, high-quality ingredients, and efficient service models.

Top Bagel Franchises with Low Investment Costs

Investing in a franchise doesn't have to break the bank. The top bagel franchises with low investment costs offer a doorway to entrepreneurship without the hefty upfront capital typically associated with starting a business. These franchises provide affordable entry points and the potential for high returns, making them ideal for first-time entrepreneurs and budget-conscious investors.

Big Apple Bagels

Founded in: 1993
Franchising since: 1994
Franchise Units: 80
Initial investment range: $284,500 - $394,000
Initial Franchise Fee: $25,000
Royalty: 5%

Big Apple Bagels offers a unique franchise opportunity for entrepreneurs looking to enter the bakery-café segment. The brand is known for its fresh, made-from-scratch bagels, available in various flavors. In addition to bagels, the menu includes gourmet muffins, breakfast and lunch sandwiches, coffee, and a selection of deli items, catering to a wide range of customer preferences.

A distinguishing factor of the Big Apple Bagels franchise is its "My Favorite Muffin" concept. Unlike other bagel-focused franchises, Big Apple Bagels offers a dual concept that includes a bakery specializing in large, cake-like muffins. This combination allows franchisees to attract a diverse customer base and increases sales opportunities by offering a broader product range.

The franchise provides comprehensive training, marketing support, and ongoing operational assistance to ensure the success of each location. With a focus on quality products and customer service, Big Apple Bagels offers a compelling business opportunity for those interested in joining the bakery-café industry.

NYC Bagel and Sandwich Shop

Founded in: 1995
Franchising since: 2009
Franchise Units: 18
Initial investment range: $118,500 - $208,500
Initial Franchise Fee: $29,500
Royalty: 5%

The NYC Bagel and Sandwich Shop franchise offers a vibrant opportunity for entrepreneurs interested in bringing the authentic taste of New York bagels and sandwiches to their locality. The franchise stands out in the fast-casual industry for its dedication to authenticity and quality, serving breakfast and lunch options all day. The menu includes various authentic New York bagels baked fresh on-site, homemade cream cheeses, and an array of lunch sandwiches such as the signature Chicken Pesto Panini and Reuben on Rye.

A unique aspect of the NYC Bagel and Sandwich Shop franchise is its commitment to serving breakfast all day. This approach not only caters to the increasing demand for breakfast food at any time of the day but also distinguishes the franchise from others in the same industry that may limit breakfast service to morning hours. This flexibility in menu offerings allows franchisees to attract a broader customer base, including those looking for a breakfast option in the afternoon or evening.

The franchise provides comprehensive support to its franchisees, including training, marketing, and operational assistance, ensuring a smooth start and ongoing success. By joining the NYC Bagel and Sandwich Shop franchise, entrepreneurs can bring a piece of New York's culinary tradition to their community, backed by a supportive and experienced team.

Between Rounds

Founded in: 1990
Franchising since: 1992
Franchise Units: 4
Initial investment range: $165,500 - $525,000
Initial Franchise Fee: $22,500 - $25,000
Royalty: Varies

Between Rounds offers a unique franchise opportunity for entrepreneurs looking to enter the bakery-café segment with a focus on fresh, high-quality bagels and breakfast sandwiches. With over 30 years of experience in Connecticut, Between Rounds has established itself as a beloved local brand known for its commitment to quality in every aspect of its offerings, from eggs and meat to fresh produce and coffee.

A distinguishing factor of the Between Rounds franchise is its emphasis on fresh, daily-made bagels, proclaimed by customers as the best in the state. The franchise prides itself on maintaining high-quality standards across all its locations, ensuring that customers receive the best possible experience. Franchisees benefit from being part of a brand deeply rooted in the local community and with a loyal customer base.

The franchise model includes comprehensive training, marketing support, and operational guidance to ensure the success of each franchisee. With a focus on quality and community, Between Rounds offers a compelling business opportunity for those interested in joining the bakery-café industry.

Top Bagel Franchises with High Market Demand

Demand drives success, and these top bagel franchises are proof. Known for their consistent customer footfall and robust sales figures, these franchises cater to a growing market of bagel enthusiasts. They offer proven business models and products that have demonstrated widespread appeal, ensuring a steady stream of business.

Manhattan Bagel

Founded in: 1987
Franchising since: 1991
Franchise Units: 73
Initial investment range: $521,300 - $778,900
Initial Franchise Fee: $25,000
Royalty: 5%

Manhattan Bagel offers an exciting franchise opportunity for entrepreneurs passionate about bringing authentic New York-style bagels to their community. As a franchisee, you'll be part of a brand that prides itself on its hand-rolled and kettle-boiled bagels, made fresh daily. The menu also features a variety of cream cheeses, breakfast sandwiches, and coffee, catering to the breakfast and lunch crowd.

One unique aspect of the Manhattan Bagel franchise is its emphasis on the New York bagel tradition. Unlike other bagel chains, Manhattan Bagel's process involves hand-rolling and kettle-boiling bagels before baking, which gives them a distinct texture and flavor. This commitment to authenticity sets the brand apart in the fast-casual industry and appeals to customers seeking a genuine bagel experience.

The franchise model includes comprehensive training, marketing support, and operational guidance to ensure your success. With a focus on quality and authenticity, a Manhattan Bagel franchise is an opportunity to bring a taste of New York to your community while building a rewarding business.

Brooklyn Water Bagel

Founded in: 2007
Franchising since: 2009
Franchise Units: 18
Initial investment range: $600,000 - $800,000
Initial Franchise Fee: $35,000
Royalty: 6%

The Brooklyn Water Bagel franchise offers a unique opportunity for entrepreneurs interested in bringing authentic New York-style bagels to their local market. The brand distinguishes itself by using a proprietary water treatment system to replicate the natural composition of the water used in Brooklyn, which is believed to be a key factor in their bagels' distinct taste and texture.

One of the unique aspects of the Brooklyn Water Bagel franchise is its commitment to a multi-unit development approach. Unlike some other franchises that allow single-unit franchising, Brooklyn Water Bagel requires franchisees to commit to developing a minimum of three locations within 36 months. This strategy ensures a strong brand presence and market penetration in the franchisee's chosen area.

Franchisees receive support through access to brand recipes, procedures, training, store build-out guidance, marketing, and ongoing coaching. The initial franchise fee is $45,000 per location, with a continuing royalty fee of 6% of net sales and a brand marketing fund contribution fee of 2% of net sales.

Brooklyn Water Bagel presents a compelling franchise opportunity for entrepreneurs who are passionate about authentic bagel culture and committed to multi-unit development.

Top Bagel Franchises with Strong Brand Recognition

A strong brand can be the cornerstone of franchise success. These top bagel franchises have established themselves as leaders in the market with memorable branding and loyal customer bases. Investing in these franchises means tapping into a proven track record and a brand identity that resonates deeply with consumers.

Einstein Bros. Bagels

Founded in: 1995
Franchising since: 1995
Franchise Units: 378
Initial investment range: $673,000 - $1,034,600
Initial Franchise Fee: $35,000
Royalty: 5%

Einstein Bros. Bagels offers a compelling franchise opportunity for entrepreneurs looking to enter the fast-casual dining industry. Focusing on serving freshly baked bagels, specialty sandwiches, coffee, and more, the franchise caters to the growing demand for quick yet quality dining options. Franchisees benefit from a well-established brand, comprehensive training, and ongoing operations, marketing, and product development support.

One unique aspect of the Einstein Bros. Bagels franchise is its commitment to innovation and menu diversity. Unlike other bagel-centric franchises, Einstein Bros. Bagels continuously evolves its menu to include seasonal offerings, limited-time products, and creative twists on classic bagel and sandwich recipes. This approach keeps the menu fresh and appealing and allows franchisees to cater to a wider range of customer preferences and dietary needs.

Investing in an Einstein Bros. Bagels franchise means joining a brand with a proven track record, a focus on quality and innovation, and a dedicated support system. It's an opportunity to be part of a franchise that stands out in the fast-casual industry for its unique menu offerings and commitment to customer satisfaction.

Initial Investment And Opening Costs For Bagel Franchises

The initial investment and opening costs for bagel franchises can vary widely depending on the brand, location, size of the store, and the extent of renovations required. Here's a detailed breakdown of the costs you can expect when opening a bagel franchise:

• ‍Franchise Fee: This is a one-time fee paid to the franchisor for the right to use their brand, systems, and support. Franchise fees for bagel franchises typically range from $20,000 to $50,000.‍
• Leasehold Improvements: These are the costs associated with renovating and outfitting your store to meet the franchisor's specifications. This can include flooring, lighting, kitchen equipment, seating, and signage. Depending on the condition of your location, these costs can range from $100,000 to $300,000.‍
• Equipment: You will need to purchase or lease various equipment for your bagel shop, including ovens, dough mixers, refrigerators, coffee machines, and display cases. Expect to spend between $50,000 and $150,000 on equipment.‍
• Initial Inventory: This includes the initial stock of ingredients (flour, yeast, toppings, etc.), packaging, and supplies. The cost for initial inventory can range from $5,000 to $15,000.‍
• Working Capital: It's important to have enough working capital to cover operating expenses such as rent, utilities, payroll, and marketing until your business becomes profitable. A recommended amount for working capital is between $20,000 and $50,000.‍
• Insurance: Insurance costs will vary depending on the coverage you choose, but you should budget for property, liability, and workers' compensation insurance. This can range from $5,000 to $10,000 annually.‍
• Training: Many franchisors require franchisees to complete a training program. While the franchise fee may cover the cost of the training itself, you will need to budget for travel, lodging, and meals, which can cost around $1,000 to $5,000.‍
• Marketing: Some franchisors may require an initial marketing contribution or ongoing marketing fees. This can range from $2,000 to $10,000 for the grand opening and initial promotions.‍
• Miscellaneous: Unexpected costs will always occur, so it's wise to set aside an additional 5-10% of your total budget for contingencies.

In total, the initial investment and opening costs for a bagel franchise can range from approximately $200,000 to $600,000. It's important to review the franchisor's Franchise Disclosure Document (FDD) and consult with financial advisors to get a more accurate estimate of the costs involved in opening your specific bagel franchise.

Benefits Of Opening Bagel Franchise

Opening a bagel franchise comes with several advantages that can make it an attractive business opportunity for entrepreneurs. Here are some key benefits:

• Proven Business Model: Franchises offer a tried-and-tested business model, reducing the risks associated with starting a business from scratch. You'll have access to a blueprint that has been successful in multiple locations.
• Brand Recognition: Joining a well-known bagel franchise gives you instant brand recognition, which can attract customers and generate sales faster than an independent startup.
• Training and Support: Franchisors provide comprehensive training programs for franchisees and their staff, ensuring that you have the necessary skills and knowledge to run your business effectively. Ongoing support in areas such as marketing, operations, and product development is also provided.
• Purchasing Power: Being part of a franchise network allows you to benefit from bulk purchasing agreements, which can significantly reduce the cost of ingredients, supplies, and equipment.
• Marketing and Advertising: Franchisors often have national or regional marketing campaigns, which can boost your visibility and attract more customers without the need for a large marketing budget on your part.
• Community and Networking: Joining a franchise network provides you with a community of fellow franchisees who can offer advice, share experiences, and provide support.
• Diverse Menu Offerings: Many bagel franchises have expanded their menus to include a variety of food and beverage options, such as sandwiches, salads, and coffee, increasing their appeal to a wider customer base.
• Flexibility in Location: Bagel franchises can thrive in various locations, including urban centers, suburban strip malls, and transportation hubs, providing flexibility in choosing a site.
• Opportunity for Growth: Once you have established your first franchise successfully, there may be opportunities to open additional locations, further increasing your revenue potential.
• Exit Strategy: Owning a franchise can provide a clear exit strategy, as the business is more likely to be attractive to potential buyers due to the established brand and support system.

Overall, opening a bagel franchise can offer a balance of entrepreneurial independence and the support of an established brand, making it an appealing option for those looking to enter the food industry.

What Points To Pay Attention To When Opening a Bagel Franchise

Opening a bagel franchise can be a rewarding venture, but it's important to pay attention to several key points to ensure success:

• Location: The success of a bagel franchise largely depends on its location. Look for high-traffic areas with good visibility and accessibility. Consider proximity to offices, schools, residential areas, and public transportation.
• Market Research: Conduct thorough market research to understand the local demand for bagels and the competition in the area. This will help you tailor your offerings and marketing strategies to meet the needs of your target audience.
• Franchise Selection: Choose a franchise that aligns with your business goals and values. Evaluate the franchisor's reputation, support system, training programs, and financial performance of existing franchises.
• Financial Planning: Prepare a detailed business plan and financial projections. Ensure you have sufficient capital for the initial investment, working capital, and reserves for unforeseen expenses.
• Legal and Regulatory Compliance: Understand the legal requirements for opening a food business in your area, including health and safety regulations, permits, and licenses. Review the Franchise Disclosure Document (FDD) and consult with a franchise attorney before signing any agreements.
• Staffing: Hiring and training the right staff is crucial for providing excellent customer service and maintaining the quality of your products. Invest in training your team to uphold the standards of the franchise brand.
• Quality Control: Consistency is key in the food industry. Adhere to the franchisor's recipes, preparation methods, and quality standards to ensure that your customers have a consistent experience across all locations.
• Marketing and Branding: Leverage the franchisor's marketing campaigns and materials, but also develop local marketing initiatives to attract customers in your community.
• Customer Service: Provide exceptional customer service to create loyal customers who will return and recommend your bagel franchise to others.
• Adaptability: Stay adaptable and open to changes in the market, customer preferences, and franchise system. Be proactive in seeking ways to improve your operations and offerings.

By paying attention to these points, you can increase your chances of success and build a thriving bagel franchise that stands out in the market.