If you are considering franchising a restaurant, a bagel shop is often an excellent choice. Bagels are one of the most popular breakfast foods out there, so these shops are often quite profitable.
While looking for bagel shops to franchise, you may come across Brooklyn Water Bagel.
To franchise a Brooklyn Water Bagel location, you will have to pay an initial franchise fee of $35,000.When all is said and done, your initial investment into the location will likely be somewhere around $600,000-$800,000.
Keep reading to learn more about the cost of opening a Brooklyn Water Bagel, the criteria required for franchisees, and what opportunities a store like this can bring you.
- The Cost of Franchising a Brooklyn Water Bagel
- Other Criteria for Opening a Brooklyn Water Bagel Franchise
- What is the Application Process Like?
- What Happens After You’re Approved?
- Are Bagel Shops a Good Investment?
- The Bottom Line
The Cost of Franchising a Brooklyn Water Bagel
To open a Brooklyn Water Bagel location, you will need to first pay a franchise fee of $35,000.
In addition, you or your partnership (if you’re franchising with another party) must have a minimum liquidity of $250,000 and a minimum net worth of $750,000.
In addition to paying the franchise fee, you will also have to pay to construct your store.
This includes things like designing and building the interior and exterior of the store and purchasing equipment and inventory. To get your store ready to open, expect to invest a total of $600,000-$800,000.
Once your store is open, you will have a few fees to pay to the company itself. The table below will highlight the various fees you will be expected to pay, and when they will be due.
|Type of Fee||Fee Amount||Frequency|
|Royalty fees||6% of net sales||Weekly|
|Brand marketing fund contribution fee||2% of net sales||Weekly|
|Franchise renewal fee||5% of the initial franchise fee||10 years|
Like with any other business, you will be responsible for the upkeep, inventory, and everything else involved with the daily operating duties.
However, you will be responsible for paying the fees listed above to Brooklyn Water Bagel on a regular basis.
Other Criteria for Opening a Brooklyn Water Bagel Franchise
Money is not the only thing you need to open a Brooklyn Water Bagel!
Apart from the monetary requirements, the company requires that applicants meet the following criteria in order to be approved as franchisees
Be familiar with the area where they want their shop to be located
Have a proven track record as the owner or operator in another restaurant or retail experience
Commit to spending the majority of their time operating their restaurant (or designate an Operating Partner to do so)
Have the determination, enthusiasm, and passion needed to run this business at a high operating standard
If you or your partnership meets all of these criteria and financial requirements, you’re well on your way to being approved.
What is the Application Process Like?
The process of applying for and getting approved to open a Brooklyn Water Bagel is lengthy but relatively straightforward. Below, we will discuss all the steps involved in this process.
The First Steps
The first thing you will have to do is fill out an inquiry form on Brooklyn Water Bagel’s company website. Fill out all the relevant information required, then submit the form for review.
Once the company receives this form, a representative will get in touch with you to set up an introductory call.
During this call, you will discuss more information about franchising a Brooklyn Water Bagel location. If both sides feel that the company is a good fit for your portfolio, you will be invited to apply for a franchise.
Now, your application will be processed. During this time, the company may schedule a follow-up call to discuss your application or verify your qualifications.
Once everything has been verified, the representative will send out the Franchise Disclosure Document (FDD).
Doing Due Diligence
When you receive the FDD, make sure to review the entire document very carefully. This includes extremely detailed information on exactly what franchising will entail.
By the end, you should have all the information necessary to decide whether opening a Brooklyn Water Bagel franchise is the right choice.
If you decide to move forward with your franchise, the next step is to discuss and research the potential trade area for your store. Make sure you have a working knowledge of the area in question.
During this time, you will be asked to conduct market and demographic research to ensure it’s a good fit.
Once due diligence is done on your side, the company can conduct its due diligence on you as the franchisee.
They will complete a background and credit check on you and any partners you’re working with. This helps ensure that their business is in good hands.
The Final Steps
After the due diligence is completed, you’ll visit the Brooklyn Water Bagel headquarters in Delray Beach, FL for “Discovery Day.”
Here, you’ll meet with the senior management team and other staff. During your visit, you’ll learn more about the company’s day-to-day operations and their long-term vision.
After Discovery Day, the executive Approval Committee will meet to discuss your application.
If they decide to approve your franchise, they will execute a Franchise Agreement between the two parties. Now, you can officially start running your business!
What Happens After You’re Approved?
After you’re approved as a franchisee, it’s time to get to work at building and developing your store.
As part of the Brooklyn Water Bagel family, you’ll gain access to a ton of helpful resources to guide you along your journey.
Some of the things you’ll be given access to include
Company recipes and procedures
A listing on the company website
A social media account
The mobile ordering and rewards program
The gift card program
Sample architectural drawings
Store layout and decor standards
Sign and equipment requirements
Receiving this kind of help from Brooklyn Water Bagel will help you significantly during the construction phase. By utilizing the resources they provide, you make the process much less stressful for both you and your wallet.
Does Brooklyn Water Bagel Offer Training and Opening Assistance?
Getting approved as a Brooklyn Water Bagel franchisee gives you access to the company’s comprehensive four-week training program.
This program combines on-the-job training with classroom training. On-the-job training will be done partly at a special training restaurant, while classroom training will be done at the company’s offices.
This training program is available to all the store’s key personnel. During this, franchisees will learn all they need to know about the products, procedures, and systems involved with running the business.
In addition, they’ll learn how to effectively manage their finances to have the highest amount of business success.
Prior to your opening, you’ll be given a Market Introduction Plan. In this document, you’ll find a marketing plan to ensure your store’s grand opening is a success.
In addition, you will also see inventory guidance and other information to ensure you can meet customer demands.
Leading up to and during the week of your Grand Opening, on-site training and support will be available for all staff members.
At this time, you will also be given an Operations Manual. This will include everything that was covered in training, as well as anything else you should know.
As your store operates and grows, Brooklyn Water Bagel will provide you with ongoing coaching. This ensures that the location is constantly operating at or above brand standards and that it remains profitable as time goes on.
Are Bagel Shops a Good Investment?
While traditional restaurants are typically considered to be risky investments, a bagel shop is usually a stable investment.
Establishments such as bakeshops, coffee shops, and bagel shops are relatively small in size. This means they can be operated in a smaller store, saving a significant amount of money.
In addition, bagel shops are almost always high-volume businesses. Bagels have always been an incredibly popular breakfast food, and their low price makes them something many customers want every day.
In no time, you’ll probably have quite a few “regulars” at your shop!
Brooklyn Water Bagel offers bagel items and sandwiches and craft coffees for purchase, as well as catering services.
The inventory and equipment required are relatively low cost, meaning this store often offers high returns on investment.
While a bagel shop can be considered a “niche” market, they truly cater to everyone. Whether it’s a family with children, teenagers looking for a before or after-school snack, or singles, everyone is sure to find something they love.
The Bottom Line
After paying an initial franchise fee of $35,000, you’ll likely need to invest up to $600,000-$800,000 before your Brooklyn Water Bagel franchise is ready for business.
At this time, Brooklyn Water Bagel does not offer financing options to potential franchisees.
If you or your partnership meet both the financial and professional criteria set by the company, investing in this franchise can be a very lucrative experience.
The company provides a ton of resources to approved franchisees, and it should be easy to turn a profit as a bagel shop.