H&H BAGELS

Item 7 lays out the initial investment from $660,110 to $1,020,860, covering build-out for a 1,500-2,500 sq ft space, equipment, and inventory in high-traffic areas. The $40,000 franchise fee gets you the proprietary system, training, and iconic branding, but ongoing fees bite at 6% royalty plus 2% ad fund and a $250 monthly tech fee—standard for food but worth modeling against $2,617,339 average gross revenue from the single disclosed unit. That Item 19 figure crushes many bakery peers, translating to an estimated profit of $1,158,899, assuming healthy margins on spreads, smoked fish, and salads for dine-in, takeout, or delivery.

System health shows promise with 16 projected new units despite franchising only since 2021 and one franchise open. Three SBA loans averaging $911,267 reflect lender confidence for funding these mid-seven-figure builds. No terminations or transfers yet in a young system, but the five corporate locations provide a solid operational backbone. For bagel lovers eyeing food franchises, H&H stands out for revenue punch in a niche, though scaling risks in a market full of chains demand scrutinizing local competition via Item 20.