2026 FDD Issued May 7, 2026 Minnesota Commerce (CARDS) Checked Nov 2, 2026
H&H Bagels Franchise Cost (2026)
A H&H Bagels franchise costs an estimated $632,860 – $891,860 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $40,000 initial franchise fee (Item 5) and covers this format: Single Restaurant (1,400 to 1,900 sq ft). Item 6 lists royalty: 6% of Gross Sales, subject to the conditions below.
- Total investment
- $633K – $892KItem 7 source and qualifications
- Franchise fee
- $40KItem 5 source and terms
- Royalty
- 6% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 2% of Gross SalesItem 6 conditions and fee bases apply
- Units (2025)
- 12Item 20 source and scope
- Franchise exit rate
- 0% / yrCalculated 3-year average; definition and source
What stands out about H&H Bagels
The sales figures in Item 19 come almost entirely from the brand's own restaurants. Of the locations open a full year, all but one were owned by affiliates, and the franchisor says their sales did not differ materially from the franchised one. Only a minority of the group reached the average, which is pulled up by one very high-volume restaurant. A buyer should treat these as company results, not as evidence of what a franchisee in a new market sells.
Franchising is new. Item 20 shows the first franchised restaurant opening in 2024 and 6 more in 2025, for 7 franchised locations at year end, with no exits yet. That leaves little franchise operating history to check with current owners.
Build-out drives the $632,860 – $891,860 estimate. Construction and kitchen equipment are the two largest Item 7 lines, each far above the franchise fee, and the cost depends on how much HVAC, venting and storefront work a site needs. Item 5 also adds an initial training fee, and the franchisor may later require a local advertising spend and a regional cooperative contribution on top of a royalty of 6% of Gross Sales and the brand fund.
What are the initial franchise fees and financial requirements for H&H Bagels?
Item 5 lists an initial franchise fee of $40,000 for H&H Bagels. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 9-10): the Initial Franchise Fee is $40,000 for a single restaurant, paid at signing. Under a Development Agreement (at least three restaurants) fees are $40,000 for the first, $35,000 each for the second through fifth and $30,000 for each later restaurant, with a $20,000 Development Fee per additional restaurant credited toward those fees. Qualifying veterans and first responders may receive $5,000 off the first fee. A $7,500 Initial Training Fee is due 30 days before opening. Fees are non-refundable, except that the franchisor may refund 50% of the franchise and development fees, less its costs, if an owner fails initial training.
Source: H&H Bagels 2026 FDD, Item 5, PDF p. 9.
This record lists no minimum net worth or liquid-capital requirement for H&H Bagels, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a H&H Bagels franchise? (Item 7)
Source: H&H Bagels 2026 FDD, Item 7, PDF p. 16.
Item 7 of H&H Bagels’s 2026 Franchise Disclosure Document estimates the total cost to open one single restaurant (1,400 to 1,900 sq ft) at $632,860 – $891,860. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Construction and Leasehold Improvements | $250,000 | $425,000 |
| Furniture and Fixtures | $5,000 | $15,000 |
| Equipment | $225,000 | $250,000 |
| Design & Project Management | $30,000 | $40,000 |
| Professional Services Fees | $1,500 | $3,500 |
| Opening Inventory | $7,500 | $10,000 |
| Opening Supplies | $1,500 | $2,500 |
| Computers, Telecommunications, and Security System | $20,000 | $30,000 |
| Exterior Signage | $10,000 | $20,000 |
| ServSafe Program Tuition Cost | $360 | $360 |
| Initial Training Fee | $7,500 | $7,500 |
| Market Introduction | $2,500 | $5,000 |
| Insurance | $1,000 | $2,500 |
| Utility Deposits | $0 | $500 |
| Permits and Deposits | $1,000 | $2,500 |
| Lease Deposit | $5,000 | $12,500 |
| Additional Funds | $25,000 | $25,000 |
| Total | $632,860 | $891,860 |
Other formats
| Format | Total investment |
|---|---|
| Three Restaurants under a Development Agreement (opening the first) | $672,860 – $931,860 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
Item 7 (PDF pages 16-17) and the cover print $632,860 to $891,860 for one restaurant of about 1,400 to 1,900 square feet; its 18 lines add to that total. Construction and equipment are the largest lines. Additional funds are a fixed $25,000. The cover prints $672,860 to $931,860 for three restaurants under a Development Agreement, including opening the first.
What ongoing royalties and fees does H&H Bagels charge? (Item 6)
Source: H&H Bagels 2026 FDD, Item 6, PDF p. 11.
Item 6 of H&H Bagels’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty | 6% of Gross Sales | Every period | 6% of Gross Sales for each location, paid weekly by electronic funds transfer from opening. Developers may earn a 0.5% royalty credit on opening their fourth franchise (note 1). (Item 6, PDF p. 11) |
| Brand Fund Contribution | 2% of Gross Sales | Every period | 2% of weekly Gross Sales, paid with the royalty (note 2). (Item 6, PDF p. 11) |
| Local Advertising Expenditure | Varies | When it applies | Not currently required beyond the market introduction campaign; on 30 days' notice the franchisor may require up to 2% of the prior month's Gross Sales, spent locally or paid to it (note 3). (Item 6, PDF p. 11) |
| Regional Advertising Cooperative | Varies | When it applies | If established, 1% of weekly Gross Sales, which may rise to 2%; credited toward local advertising (note 4). (Item 6, PDF p. 11) |
| Additional and/or Remedial Training Fee | Varies | When it applies | $500 a day, plus travel, lodging and meals of the franchisor's staff if training is at your location. (Item 6, PDF p. 11) |
| Attorney Fees and Costs | Varies | When it applies | All costs and expenses if the franchisor prevails in litigation to enforce any agreement. (Item 6, PDF p. 11) |
| Collection Costs and Expenses | Varies | When it applies | Collection costs, agency commissions and reasonable attorneys' fees. (Item 6, PDF p. 11) |
| Renewal Fee | Varies | When it applies | 25% of the then-current Initial Franchise Fee, before renewal is approved. (Item 6, PDF p. 11) |
| Testing and Evaluation Costs | Varies | When it applies | The cost of inspecting, evaluating or testing a supplier you propose, likely $500 or less. (Item 6, PDF p. 11) |
| Interest | Varies | When it applies | The lesser of 18% per year or the highest lawful rate on overdue amounts (note 5). (Item 6, PDF p. 11) |
| Technology and Website Services Fee | $250 per month | Every period | $250 per month for operational support and training through FranConnect, the loyalty and ordering app, an online ordering platform (currently DoorDash) and website maintenance. (Item 6, PDF p. 11) |
| Convention Fee | Varies | When it applies | Currently $700 per attendee for the annual convention; may rise to no more than $1,500. (Item 6, PDF p. 12) |
| Audit Fee | Varies | When it applies | If an audit finds Gross Sales understated by more than 2% but less than 5%, the audit costs plus the amount owed with interest; more than 5%, or more than 2% three times in 36 months, may lead to termination (note 6). (Item 6, PDF p. 12) |
| Relocation Fee | Varies | When it applies | $5,000 or a greater amount needed to cover the franchisor's relocation costs. (Item 6, PDF p. 12) |
| Post-termination and Post-expiration Expenses | Varies | When it applies | All costs of ceasing to be a franchisee and de-identifying the business. (Item 6, PDF p. 12) |
| Transfer Fee | Varies | When it applies | 25% of the then-current initial franchise fee plus review costs. No fee for a transfer to your own entity, to a franchisee or manager with at least five years in the system, or on death or disability; Development Agreements cannot be transferred (note 7). (Item 6, PDF p. 12) |
| Liquidated Damages | Varies | When it applies | The present value of three years of royalty and Brand Fund contributions, based on the last 12 months, if the franchisor terminates for default or you abandon the franchise (note 8). (Item 6, PDF p. 12) |
| Franchisee's Public Offering Fee | Varies | When it applies | $10,000 or the higher cost of reviewing your public offering documents. (Item 6, PDF p. 12) |
| Insurance | Varies | When it applies | The cost of required insurance and, if the franchisor buys it because you did not, a $500 fee (note 9). (Item 6, PDF p. 12) |
| Indemnification Fee | Varies | When it applies | Claims, losses and defense costs arising from the operation of your business (note 10). (Item 6, PDF p. 12) |
| Fees on Default and Indemnity | Varies | When it applies | Collection costs and attorneys' fees on a default (note 11). (Item 6, PDF p. 12) |
| Maintenance of Premises / Refurbishment | Varies | When it applies | Approximately $500 to $5,000 per year for upkeep, plus any refurbishment and system changes the franchisor requires (note 12). (Item 6, PDF p. 12) |
Among the published restaurants & food records with comparable flat royalties, the median is 6%; H&H Bagels lists 6%. This is the site’s sample, not an industry-wide estimate.
Explore annual fees and payback assumptions
Start with the recorded H&H Bagels inputs, then enter your own operating costs and sales assumptions. The result is a scenario, not an FDD profit forecast.
H&H Bagels startup investment and modeled fees over 10 years
Item 19 does not supply an average or median sales figure suitable for this model, so we do not estimate annual fees in dollars. For every $100 of sales, an owner pays 8% in percentage fees , plus $3,000 a year in fixed fees. Estimate it with your own sales figure · Estimate your payback for H&H Bagels.
Item 20: H&H Bagels franchised outlet history
Source: H&H Bagels 2026 FDD, Item 20, PDF p. 53.
Item 20 Table 3 reports 7 franchised outlets at the end of 2025. The company-owned table reports a further 5 outlets. Our calculated average annual franchised exit rate is 0% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 0 | 0 | 0 | 0 | — |
| 2024 | 0 | 1 | 0 | 1 | — |
| 2025 | 1 | 6 | 0 | 7 | 0% |
Franchised units went from 0 to 7 over 3 years (+7).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare H&H Bagels’s exit rate with other brands.
Item 20 Table 3 (franchised) and Table 4 (company-owned) totals match Table 1 (PDF page 52). Franchising began recently: the first franchised restaurant opened in 2024 and six more opened in 2025, while affiliates operated five restaurants at the end of 2025. There were no franchised exits.
How much do H&H Bagels franchise owners make? (Item 19)
Source: H&H Bagels 2026 FDD, Item 19, PDF p. 51.
Item 19 of the 2026 FDD reports average Gross Sales, Operating Locations of $1,884,613 (fiscal year 2025, 6 restaurants open more than 12 months: 5 company-owned (owned by affiliates) and 1 franchised; 2 (33%) were at or above the average). H&H Bagels’s Item 19 reports sales and other operating figures but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (6% of Gross Sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every H&H Bagels Item 19 figure, with its period and sample.
Estimate your payback for H&H Bagels using Item 7 startup costs and Item 6 fee rules.
How to interpret H&H Bagels’s Item 19 figures and sample limits.
How long is the H&H Bagels franchise agreement term?
Source: H&H Bagels 2026 FDD, Item 17, PDF p. 44.
The standard H&H Bagels franchise agreement runs 10 years, with renewal terms of 5 years.
Item 17 (PDF page 44): a 10-year term, with the right to renew for 2 consecutive 5-year terms if you meet the renewal requirements and pay the renewal fee.
How long does it take to open a H&H Bagels franchise? (Item 11)
Source: H&H Bagels 2026 FDD, Item 11, PDF p. 28.
Item 11 of the 2026 FDD states the time from signing the Franchise Agreement or the first payment for the franchise to opening: approximately nine to 12 months. The agreement requires you to open within 365 days after the date of the Franchise Agreement.
You must acquire or lease an approved location within 120 days of signing.
Franchises with a similar investment range
These published records are selected by proximity to H&H Bagels’s $632,860 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
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- Paris Baguette $728K – $1.86M Restaurants & Food
- Dunkin' $532K – $1.83M Source review pending Provisional publication Restaurants & Food
- Fatburger $517K – $2.66M Source review pending Provisional publication Restaurants & Food
- Blaze Pizza $757K – $1.3M Restaurants & Food
Compare other restaurants & food franchises
Sources
H&H Bagels Franchising LLC Franchise Disclosure Document, issued May 7, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 9
- Item 6: cited PDF p. 11
- Item 7: cited PDF p. 16
- Item 19: cited PDF p. 51
- Item 20: cited PDF p. 53
- Agreement term (Item 17): cited PDF p. 44
Page references for H&H Bagels use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 2, 2026: Source check completed against the recorded FDD.
- November 2, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued May 7, 2026).
- November 2, 2026: Independently checked against the May 7, 2026 Minnesota Clean FDD: cover, Items 5, 6, 7, 11, 17, 19 and 20. Item 6 now lists all 22 rows (the draft had 6) and corrects the transfer fee to 25% of the then-current initial fee. Item 19 now shows that its sample is five company-owned restaurants and one franchised restaurant and no longer drives the fee model. Added the opening time and deadline, renewal terms and Item 7 notes. Rewrote the analysis.