About Manhattan Bagel Company Franchise
Manhattan Bagel Company is a New York style bagel restaurant franchise that has been franchising since 1991, backed by Einstein Noah Restaurant Group, Inc.
The brand serves authentic kettle boiled bagels alongside a menu of breakfast sandwiches, deli sandwiches, salads, and specialty coffee drinks.
Manhattan Bagel locations capture the tradition and quality of genuine New York bagel making.
Manhattan Bagel Company Franchise Cost & Fees
Minimum Investment
$537K
Average Investment
$716K
Maximum Investment
$895K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 5% of Gross Sales (currently 2.5% of Gross Sales) | National brand fund |
| Total Investment Range | $537,200 – $894,700 | Includes build-out, inventory, working capital |
The investment range of $537K–$895K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Up to 5% of Gross Sales (currently 2.5% of Gross Sales)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Construction/ Costs | $210,000 | $310,000 |
| Computer Equipment & Electronics | $26,000 | $54,000 |
| Furniture, Fixtures & Equipment | $175,000 | $261,000 |
| Signage & Graphics | $10,000 | $50,000 |
| Professional Fees (incl. architectural or engineering fees and permit and impact fees) | $30,000 | $35,000 |
| Initial Franchise Fee | $25,000 | $25,000 |
| Design Review Fee | $2,000 | $2,000 |
| Real Estate Leasing | $16,000 | $35,000 |
| Opening Inventory, Smallwares and Supplies | $10,000 | $20,000 |
| Grand Opening Marketing Promotion | $7,500 | $10,000 |
| Insurance | $4,000 | $7,500 |
| Training and Training Expenses | $4,200 | $17,200 |
| Legal & Accounting | $1,000 | $3,000 |
| Business Licenses | $500 | $5,000 |
| Security Deposits | $4,000 | $10,000 |
| Additional Funds (Three Months) | $12,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $12,500 or 50% of then-current initial franchise fee, whichever is more |
| Renewal Fee | 50% of the then-current initial franchise fee, or $12,500, whichever is more |
| Technology Fee | $300-$500 per accounting period (Systems Support Fee), $345 annually (Software Maintenance Fee) |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs (if underreported sales by 2% or more) |
| Grand Opening Marketing Program | $7,500 |
| Interest on Overdue Amounts | 1.5% per month on the underpayment |
| Costs and Attorneys' Fees | Will vary under circumstances |
| Supplier Testing | Will vary, but not more than $5,000 |
| Indemnity | Will vary under circumstances |
| Securities Offering Fee | $7,500 or our actual expenses, whichever is more |
| Additional Training | Our per–diem charges, plus our out–of–pocket costs ($350 per trainer per day currently) |
| Training Fee (additional individual) | $1,600 for each additional individual |
| Quality Control Evaluation Program | The per-visit charge currently ranges from $30 plus expenses to approx. $50 plus expenses; the likely maximum per year is $800 |
| Approved Software Fees | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately four week period |
| Classroom Training | 24 |
| On-the-Job Training | 226 |
| Training Location | A designated training Store or other location we select |
| Additional Training | Franchisor may conduct additional training programs. If franchisee requests additional on-site training, they must pay per-diem charges ($350 per trainer per day) plus out-of-pocket costs. Franchisees are responsible for all expenses incurred in attending training (transportation, lodging, meals, wages, worker's compensation insurance). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Territory |
| Exclusive Territory | No |
| Territory Size | A circle with a radius of a minimum of two miles (less in dense urban centers) |
| Description | During the term of the Franchise Agreement, the franchisor will not establish or license another Manhattan Bagel Restaurant within the designated "Protected Territory." However, the franchisor retains the right to establish or license restaurants outside the Protected Territory, at Non-Traditional Facilities or Captive Market Locations (inside or outside the Protected Territory), or under other systems/marks. The franchisor can also sell and distribute products directly or indirectly from any location or to any purchaser, as long as sales are not conducted from a retail Restaurant inside the Protected Territory (excluding Captive Market Locations). Continuation of territorial rights is not contingent on sales volume or market penetration. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | The earlier of 10 years from the date the Restaurant opens, or 11 years from the effective date of the Franchise Agreement |
| Renewal Term | One additional 10-year term |
| Renewal Fee | 50% of the then-current initial franchise fee, or $12,500, whichever is more |
| Renewal Conditions | Franchisee must give written notice 9-12 months before term end, remodel/refurbish to current standards, be in material compliance with agreement, timely meet all financial obligations, sign new franchise agreement (which may have materially different terms, including higher fees and different territorial rights), sign a mutual release, and meet current qualification/training requirements. |
| Transfer Fee | $12,500 or 50% of then-current initial franchise fee, whichever is more |
| Transfer Conditions | Transferor must execute a general release, transferee must be designated as a Principal and bound by agreement terms, new Principals must meet educational/managerial/business standards, possess good moral character, business reputation, credit rating, aptitude/ability to operate, and adequate financial resources. Franchisor may require transferee to sign new form of franchise agreement and ancillary agreements, and transferor to conduct Facilities Remodeling. |
| Termination for Cause | Automatic termination for insolvency, bankruptcy, receivership, dissolution, or levy against property. Immediate termination with notice for failure to open on time, abandonment for 2 consecutive days, conviction of felony/moral turpitude crime, public health/safety threat, unauthorized transfer, false books/reports, three or more defaults in 52 weeks, selling unapproved products/from unapproved suppliers/Proprietary Items outside Restaurant, fraudulent/unfair/unethical/deceptive practice, unauthorized delivery/catering, or improper use of Proprietary Marks. Termination with 30-day cure period for other material defaults. |
| Non-Compete Period | During the term of the franchise and for a continuous period of two (2) years after expiration or termination. |
| Non-Compete Details | During the term, franchisee cannot directly or indirectly engage in a "Competitive Business" (retail business selling bagels, cream cheese, and/or coffee products constituting 30% or more of gross revenues). After termination/expiration, the restriction applies within the Protected Territory or within 10 miles of any other System restaurant then-operating. Also prohibits diverting business/customers and selling/transferring the Approved Location to a party intending to operate a Competitive Business for two years post-term. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The Franchise Agreement does not require personal participation in direct operation, but active participation is encouraged. The franchisee or an approved Operating Partner must devote full time, energy, and best efforts to management. If the franchisee is an entity, all owners must sign a personal guarantee. An Operating Partner and Certified Manager must be approved by the franchisor, have a good business reputation, multi-unit (Operating Partner) or single-site (Certified Manager) management experience, and successfully complete training. All principals, Certified Managers, supervisors, and other managers must sign a non-disclosure and non-competition agreement. |
| Required Suppliers | Franchisee must buy all Proprietary Items (bagels, baked and sweet snacks, cookies, cream cheese, cream cheese spreads, coffee, coffee beans, and paper and plastic goods bearing the Proprietary Marks) only from the franchisor, its affiliate, its parent company, or its designee(s). For other products and items, franchisees must buy from approved suppliers. The franchisor has the right to designate only one supplier for certain items. |
| Supply Restrictions | Franchisee must offer for sale only approved Products, sell all required Products, use specified ingredients and preparation standards, and not deviate from standards without consent. Franchisor may periodically establish food commissaries and distribution facilities and designate them as approved or required. Franchisor may establish strategic alliances or preferred vendor programs, limiting approved suppliers. Franchisor and its affiliates are not currently suppliers of any Products or other items other than Proprietary Items. Franchisor reserves the right to collect and retain manufacturing allowances, marketing allowances, rebates, credits, monies, payments and benefits from suppliers. |
| Franchisor Revenue from Suppliers | $331,010 (less than one percent of ENRG’s total revenues of $585 million) from sale of Proprietary Items to Manhattan Bagel Company franchisees during fiscal year ended December 27, 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor any agent or affiliate offers direct or indirect financing to you, guarantees any note, lease or obligation of yours, or has any practice or intent to sell, assign or discount to a third party all or part of any financing arrangement of yours. |
Manhattan Bagel Company Franchise Earnings — Item 19
Average Revenue
$723K
Median Revenue
$641K
Revenue Range
$173K – $2.2M
Sample Size
62 units
Past financial performance does not guarantee future results. Individual results will vary.
Manhattan Bagel Company Litigation & Risk Flags
Clean Litigation RecordManhattan Bagel Company has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Manhattan Bagel Company System Growth
Total Units
62
Franchised
62
Company-Owned
0
Manhattan Bagel Company currently operates 62 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 64 |
| 2021 | 1 | 4 | 61 |
| 2022 | 1 | 0 | 62 |
Transfers: 8 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$970K
Net Income
$50K
Total Assets
$1.4M
Audited by Grant Thornton LLP for year ending December 27, 2022.
Manhattan Bagel Company Franchise — FAQ
The total investment to open a Manhattan Bagel Company franchise ranges from $537,200 to $894,700, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Manhattan Bagel Company charges a royalty fee of 5% of Gross Sales of gross sales, plus a Up to 5% of Gross Sales (currently 2.5% of Gross Sales) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Manhattan Bagel Company Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Manhattan Bagel Company to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Manhattan Bagel Company franchise owners report average revenue of $723K and median revenue of $641K. This is based on a sample of 62 units. Past performance does not guarantee future results.
Manhattan Bagel Company has been franchising since 1991. The FDD shows an investment range of $537,200-$894,700, a 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 and the total investment ranges from $537,200 to $894,700 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Manhattan Bagel Company and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Manhattan Bagel Company or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com