About Long Island Bagel Cafe Franchise
Long Island Bagel Cafe is a New York style bagel restaurant franchise that has been franchising since 2019.
The brand serves fresh, kettle boiled bagels alongside a full menu of breakfast and lunch options including egg sandwiches, deli sandwiches, salads, and specialty coffee drinks.
The cafes capture the authentic New York bagel experience that customers crave.
Long Island Bagel Cafe Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales (Brand Development Fee) + 2% of Gross Sales (Local Advertising) | National brand fund |
| Total Investment Range | $585,200 – $882,100 | Includes build-out, inventory, working capital |
The investment range of $585K–$882K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (1% of Gross Sales (Brand Development Fee) + 2% of Gross Sales (Local Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Leasehold Improvements | $225,000 | $325,000 |
| Security Deposits | $4,000 | $30,000 |
| Furniture, Fixtures and Equipment | $225,000 | $300,000 |
| All Signage | $15,000 | $20,000 |
| Initial Inventory (Proprietary Items) | $5,000 | $10,000 |
| Initial Inventory | $5,000 | $5,000 |
| Blueprints and Plans | $10,000 | $20,000 |
| Computer/POS System | $1,600 | $2,500 |
| Security System, Televisions, etc. | $4,000 | $8,000 |
| Travel, lodging and meals for initial training | $1,000 | $10,000 |
| Insurance – 3 Months | $3,000 | $6,000 |
| Grand Opening Advertising | $10,000 | $15,000 |
| Licenses and Permits | $2,000 | $5,000 |
| Professional Fees | $2,000 | $10,000 |
| Additional Funds – 3 Months | $37,600 | $80,600 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 (Franchise Agreement) |
| Renewal Fee | 50% of our then-current initial franchise fee for a single unit franchise |
| Technology Fee | $200 per month (POS System Fee) |
| Audit Fee | $1,000 to $5,000 (estimated) |
| Cooperative Advertising | As determined by the members |
| Initial Training (For New or Replacement Employees) | Our then-current daily, per person training fee, plus expenses (Current daily fee = $250) |
| Additional On-Site Training / Remedial Training | Our then-current per diem rate per trainer, plus expenses (Current per diem rate = $250) |
| Insufficient Funds Fee | $50 per occurrence |
| Interest | 18% per annum or the highest interest rate allowed by applicable law, whichever is less |
| Prohibited Product or Service Fine | $250 per day of use of unauthorized products or services |
| Transfer Fee – Multi-Unit Development Agreement | $2,500 per remaining Development Right |
| Relocation Fee | Reimbursement of our expenses, up to $5,000 |
| Liquidated Damages | See footnote 4 (average monthly Royalty Fees for 12 months * 24 or remaining months, whichever is lower) |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Repair, Maintenance, and Remodeling/Redecorating | Will vary under circumstances |
| ServSafe (or similar) Certification | $150 per person or the then-current market rate |
| Insurance Premiums | Reimbursement of our costs, plus 10% administrative fee |
| Management Fee | 8% of Gross Sales, plus expenses |
| Product Purchases | Will vary as inventory is used |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately three weeks |
| Classroom Training | 44 |
| On-the-Job Training | 50 |
| Training Location | Long Island, New York |
| Additional Training | Additional on-site training or remedial training may be required at your expense, including per diem fees for trainers, travel, lodging, and meals. Refresher training courses may also be offered, with trainees responsible for their expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Territory |
| Exclusive Territory | Yes |
| Territory Size | typically include a population of 40,000 people |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Up to two renewal terms of 10 years each |
| Renewal Fee | 50% of our then-current initial franchise fee for a single unit franchise |
| Renewal Conditions | You must provide us with 12 months’ notice that you wish to renew, be in compliance with the terms of your Franchise Agreement, be current in all payments required by the Franchise Agreement, remodel and/or refurbish your Restaurant if we require, sign renewal Franchise Agreement, sign general release, pay renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract, but the boundaries of your territory will remain the same, and the fees on renewal will not be greater than the fees that we then impose on similarly situated renewing franchisees. |
| Transfer Fee | $15,000 |
| Transfer Conditions | You must pay all amounts due us or our affiliates, not otherwise be in default, sign a general release, and pay a transfer fee. Transferee must meet our criteria, complete training to our satisfaction and sign current Franchise Agreement. |
| Termination for Cause | Franchisor may terminate for various curable defaults (e.g., failure to pay monies, failure to maintain insurance, failure to cure quality assurance audit failures) with notice and opportunity to cure (5 to 30 days). Non-curable defaults include insolvency, bankruptcy, selling unauthorized products, failure to open Café, abandonment, conviction of felony, unauthorized transfer, false books/records, or repeated defaults. Cross-default provisions apply. |
| Non-Compete Period | two years |
| Non-Compete Details | You and your Principals are prohibited for two years from expiration or termination of the franchise from operating or having an interest in a similar business within five miles of any Café in the System. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You must designate and retain at all times an individual to serve as the “General Manager”. We recommend that you or one of your Principals act as your General Manager. The General Manager must be a full-time employee, successfully complete training, and be certified by us. At least one certified manager must be on-site while the Café is open. |
| Required Suppliers | Currently our Supply Affiliate is the sole approved supplier for bagels, salads and branded paper goods for your Café, and our Supply Affiliate reserves the right to earn a profit from the sale of these items. In addition, we are the sole approved supplier for the point of sale system. |
| Supply Restrictions | You must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment (including point of sale system and communication systems), and other products used or offered for sale at the Café solely from suppliers who demonstrate, to our continuing reasonable satisfaction, the ability to meet our then-current standards or in accordance with our standards and specifications. Currently our Supply Affiliate is the sole approved supplier for bagels, salads and branded paper goods for your Café... and for the point of sale system. |
| Franchisor Revenue from Suppliers | During the fiscal year ended December 31, 2021, neither we nor our Supply Affiliate earned any revenue from the sale of these products to our franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Long Island Bagel Cafe Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Long Island Bagel Cafe Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Long Island Bagel Cafe System Growth
Long Island Bagel Cafe currently operates 1 franchised locations and 7 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 1 | 7 |
| 2020 | 1 | 0 | 8 |
| 2021 | 0 | 0 | 8 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Miller CPA, PLLC for year ending December 31.
Long Island Bagel Cafe Franchise — FAQ
Similar Food & Beverage Franchises
Interested in Long Island Bagel Cafe?
Get free info on this franchise. We will send you a detailed FDD report by email.