Get Franchise Bundle
Get Full Bundle:
$99 $79
$79 $49
$49 $29

TOTAL:

Description
Investment Icon

What Are the Initial Investment Requirements for an Einstein Bros. Bagels Franchise?

To open an Einstein Bros. Bagels franchise, you should be prepared for an initial investment ranging from $585,000 to $1,024,000. This includes a franchise fee of $35,000. Additionally, you will need to have cash reserves between $138,550 and $620,250 and a net worth of $100,000 to $500,000. These financial requirements ensure that franchisees have the necessary resources to successfully launch and operate their locations.

Fees Icon

What Are the Ongoing Fees Associated with an Einstein Bros. Bagels Franchise?

Einstein Bros. Bagels franchisees are subject to ongoing fees that include a royalty fee of 5% of gross sales and a marketing fee of 4%. These fees contribute to the overall brand support and national marketing efforts that help drive customer traffic to each location. Understanding these ongoing costs is crucial for financial planning and profitability assessments.

Revenue Icon

What Is the Average Revenue Potential for an Einstein Bros. Bagels Franchise?

Einstein Bros. Bagels franchises have an average annual revenue of approximately $1,165,876, with a median revenue of $1,042,903. Revenue can vary significantly, with the lowest annual revenue recorded at $375,550 and the highest at $1,943,123. This range highlights the potential for strong financial performance, contingent on factors such as location and management efficiency.

Breakeven Icon

How Long Does It Take to Break Even with an Einstein Bros. Bagels Franchise?

The breakeven time for an Einstein Bros. Bagels franchise is estimated at 18 months, with an investment payback period of around 13 months. This relatively quick return on investment can be appealing for aspiring franchisees, indicating that with effective operations and marketing, profitability can be achieved in a short timeframe.

Einstein Bros. Bagels Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$100,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

13 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$35,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

4%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

18 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$585,000 - $1,024,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$138,550 - $620,250
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,081,015
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,042,903
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,943,123
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$375,550
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Coffee Franchises
Category icon A more specific division within the broader industry.

i Category:

Coffee Shops
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Jose Duenas
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

555 Zang Street, Suite 300, Lakewood, CO 80228
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2016
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

JAB Holding Company

Einstein Bros. Bagels Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

385
The number of locations owned by independent franchisees.

Franchised Units i

56
The number of locations owned and run by the franchisor.

Corporate Units i

329
Units 2021 2022 2023
Total Units 376 379 385
Net Change YoY 3 6
Franchised Units 54 56 56
Net Change YoY 2 0
Corporate Units 322 323 329
Net Change YoY 1 6
Investment About

Investment Overview

The initial investment for an Einstein Bros. Bagels franchise ranges from $585,000 to $1,024,000. This includes a franchise fee of $35,000. Potential franchisees should also prepare for a cash requirement between $138,550 and $620,250 to ensure adequate working capital and operational expenses during the initial phase.

Potential About

Revenue Potential

Einstein Bros. Bagels franchises have shown promising revenue figures, with average annual revenue per unit reported at $1,165,876. The median annual revenue stands at $1,042,903, while the revenue range spans from $375,550 to $1,943,123. This revenue potential highlights the brand's strong market presence and customer demand.

Metrics About

Operational Performance

The average gross profit margin for Einstein Bros. Bagels franchises is 71.1%, indicating effective cost management and pricing strategies. After accounting for operating expenses, which average $404,161, franchisees can expect an EBITDA of approximately $425,613, reflecting a healthy operating profit relative to revenue.

Fees About

Royalty and Marketing Fees

Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 4%. These fees contribute to the overall brand strength and marketing efforts that help drive customer traffic and sales across all locations.

Breakeven About

Breakeven and Payback Period

Franchisees can anticipate reaching breakeven within approximately 18 months. This relatively quick payback period of 13 months on the initial investment underscores the franchise's potential for profitability, making it an attractive option for aspiring entrepreneurs.

Units About

Franchise Growth

As of 2023, Einstein Bros. Bagels operates a total of 385 units, with 56 of those being franchised. The steady growth in franchised units from 54 in 2021 to 56 in the following years demonstrates the brand's stability and ongoing appeal in the competitive food service industry.

Frequently Asked Questions

The initial investment for an Einstein Bros. Bagels franchise ranges from $585,000 to $1,024,000. This includes the franchise fee, equipment, and other startup costs.