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EINSTEIN BROS. RESTAURANT

EINSTEIN BROS. RESTAURANT

Einstein Bros. Bagels franchises quick-service restaurants specializing in fresh-baked bagels, cream cheese and other spreads, specialty coffees and teas, baked sweets and snacks, and creative lunch items. The business model includes Franchise Agreements for standard locations, License Agreements for non-traditional or captive market venues, and Area Development Agreements for multi-unit developers, with total investments ranging from $138,550 to $1,030,500 depending on the agreement type. It targets consumers seeking convenient, on-the-go breakfast and lunch options.

63locations
$555K–$1031K
Since 2006
Food & BeverageDenver, COEinstein Noah Restaurant Group, Inc.www.einsteinbros.comDisclaimer

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Franchise Costs

Franchise Fee
$35,000
Initial Investment
$555,000 – $1,030,500
Royalty Rate
5.00%
Brand Fund
4.00%
Fixed Monthly Fees
$500 – $1,100

5% royalty + 4% marketing contribution + $500-$1,100/mo system support fee

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$1,114,358
Median Gross Revenue
$1,086,065

Data Based On: 55 Franchised Restaurants open for the entire 2024 fiscal year (53-week period from December 27, 2023 to December 31, 2024).

* Average and Median Gross Sales for franchised restaurants were directly extracted from Table 1 on page 3. No explicit average revenue for top or bottom quartile segments was provided for franchised units. No profit or expense data was provided for franchised units; Item 19 explicitly states that cost factors presented in Table 2 are for company-owned restaurants only and should not be considered actual or potential costs for franchisees.

Extracted Item 19 Section

Avg. Revenue: $1,114,358

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EINSTEIN BROS. RESTAURANT Franchise Analysis

Einstein Bros. Bagels entered franchising in 2006, building a modest network overshadowed by its vast corporate footprint. Item 19 discloses revenue figures that stand out in quick-service bagels, while SBA loan history uncovers financing realities for operators. Does this corporate-heavy model signal stability or limit franchise upside?

Item 7 outlines initial investments from $555,000 to $1,030,500 for standard franchises, plus lower-entry license deals down to $138,550 for non-traditional spots. Franchise fee hits $35,000, followed by 5% royalties, 4% brand fund, and $500-$1,100 monthly system fees. Item 19 shines with average gross sales of $1,114,358 and median $1,086,065 across units—strong for breakfast/lunch quick-serve, implying potential 20%+ EBITDA margins after costs if expenses align with norms. SBA data logs 18 loans averaging $543,011 but flags an 11.1% default rate, hinting at cash flow pressures in some locations.

The system's trajectory shows steady expansion: 56 franchised units in 2023 to 63 in 2024 (+12%), with 10 projected new units and minimal friction—just 1 termination and 1 transfer. Yet, 352 corporate stores dwarf the franchise side, suggesting tight control rather than explosive growth. This maturity curbs risk but caps multi-unit scale; healthy for single-unit buyers chasing proven bagel demand, but watch if corporate saturation stifles franchise momentum.

Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How EINSTEIN BROS. RESTAURANT Compares

Key Insights

  • Lower than average SBA loan default rate in Fast Food
FranchiseInvestmentFeeRoyaltyLocations
EINSTEIN BROS. RESTAURANT
Current
$555K – $1.0M$35K5.0%63
MCDONALD'S$1.5M – $2.6M$45KN/A12,772
LITTLE CAESARS$377K – $1.8M$20K6.0%3,788
AFC$45K – $151K$6K9.5%3,572
KFC (NON-TRADITIONAL)$1.2M – $4.2M$45KN/A3,404
SONIC DRIVE-IN$1.5M – $2.5M$15K5.0%3,120
Fast Food Average
132 franchises
$602K – $1.6M$35K6.1%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 Fast Food franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States
1TX
13
2CA
11
3TN
6
4PA
6
5AZ
4
6FL
4
7AR
3
8CO
3
9VA
3
10NC
2
11OK
2
12IL
2
13IN
1
14MI
1
15GA
1

+2 more states

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SBA Loan History


Historical SBA 7(a) loan data for EINSTEIN BROS. RESTAURANT franchisees (20132025)

Total Loans
18
Average Loan
$543,011
Total Volume
$9.8M
Default Rate
11.1%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

18 SBA loans on record

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Franchisee Contacts

509 franchisee contacts on file from official FDD filings.

509 Contacts Available

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Due Diligence


Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
1
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
1
Sold to Franchisees
0
Projected New
10

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Frequently Asked Questions

The total initial investment to open a EINSTEIN BROS. RESTAURANT franchise ranges from $555,000 to $1,030,500. This includes a franchise fee of $35,000. Ongoing royalty fees are 5.0% of gross sales.