Guide to Bagel Chains

Business.com / Industry / Last Modified: February 22, 2017

Bagel chains are located in cities all over the country. Their menus offer a variety of bagels and pastries served with butter, cream ...

Bagel chains are located in cities all over the country. Their menus offer a variety of bagels and pastries served with butter, cream cheese and a variety of other toppings. People like them because they can pick up a bagel on the run for breakfast at reasonable price without having to prepare it themselves.

Cash in on bagel store chains by opening your own in your city. Large conglomerates own these chains and franchise them out, so get the scoop on start up costs and other regulations. Decide if you will run it yourself or hire a management team. Look for the following when deciding on franchise terms for bagel chains:

1. Decide which bagel companies are right for you.

2. Locate bagel bakery chains by initial investment.

3. Weigh pros and cons in choosing your bagel franchise.

Check availability and pricing for bagel store franchises

Not every franchise has openings in your area. Once you have decided on a chain, contact them to find out if you can open a store in your area. If they have no need in your local area, they will send you a list of close areas that need a local restaurant. You can also decide on a restaurant chain based on total price or down payment needed. You can check your state to see which restaurant chains have openings.
Einstein Noah Restaurant Group offers franchise opportunities with support to the franchise owner, including lease negotiation and training at a "bagel university".

Ask bagel shop franchises about initial investment

Initial investments for restaurant chains is usually high however, some cost less than others cost. Before you decide, find out exactly what monetary commitments you will need to make upfront. Remember also, that the initial investment for the franchise fee only covers the franchise itself and you will still need working capital for such expenses as electricity, phone and payroll.
Atlanta Bread offers franchises with a franchise fee from $30,000 to $40,000. They require liquid assets of $300,000 to $400,000 and a net worth of $650,000. Their ongoing royalty fee is five percent. Panera Bread requires franchisees for its bakery cafe chain to open 15 locations over six years and come in with a net worth of $7.5 million. 

Open bagel restaurants for immediate business

When you open a chain store, you are cashing in on the name of the franchise. People know that whether your store is in Maine or California they will get the same menu and service and they stop at a familiar place. This is why you buy a franchise but the down side is there are tight regulations on franchises. You will get your operating schedule, menu and décor from the company. If you fail to meet your obligations, which usually include buying all of your supplies from them, you will lose your franchise.
America's Best Franchises provides listings of all restaurant chains available. Check the one that interests you for all requirements before you buy. Franchise Gator lists available franchise opportunities with restaurant chains. Check hours of operation, where to buy supplies and training requirements before you invest.
  • Purchase business insurance for bagel shops before you open for business. Make sure your insurance covers all hazards including accidents and food poisoning as well as the normal fire and theft.

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