H&H Bagels Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

1
+
n.a.
n.a.
Investment required

?

$660,000 - $1,021,000
Revenue (AUV)

?

$3,145,000
Undisclosed
Pro
+
7.4%
+
xx%
-xx%
7.4%
Initial franchise fee

?

$40,000
Royalty fees

?

6.00%
+
2% - 5%
Operating Profit

?

n.a.

Pro
Franchisees

?

1
+
n.a.
n.a.
Investment required

?

$660,000 - $1,021,000
Franchise fee

?

$40,000
Royalty fees

?

6.00%
+
2% - 5%
Revenue (AUV)

?

$3,145,000
Undisclosed
Pro
+
7.4%
+
xx%
-xx%
7.4%
Operating Profit

?

n.a.

Pro

H&H Bagels: Spreading New York’s Iconic Bagel Tradition Nationwide

H&H Bagels is a legendary New York City bagel brand founded in 1972 by Helmer Toro and Hector Hernandez. The company began with a single shop on Manhattan’s Upper West Side and has since become synonymous with authentic, kettle-boiled bagels made using traditional methods. Today, H&H Bagels is headquartered at 1551 2nd Avenue in New York, NY.

In 2021, H&H Bagels launched its national franchising program, marking a major expansion beyond its New York roots. The brand has signed agreements for 50 franchise locations across the United States, including major markets like Los Angeles, Chicago, and Washington, D.C. The first franchise location opened in Boca Raton, Florida, in 2024.

H&H Bagels offers a menu centered around its signature bagels, which are all-natural, non-GMO, and free from artificial preservatives. The bagels are crafted using the traditional water bagel method: proofed, kettle-boiled, and baked on burlap-covered wood boards in vintage revolving tray ovens.

What sets H&H Bagels apart is its ability to preserve the authenticity of New York-style bagels while incorporating modern service innovations. The brand features a Chipotle-style assembly line in its franchised stores to improve speed and enhance the customer experience.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee$40,000
Real Estate--
Construction and Leasehold Improvements$300,000 – $550,000
Furniture and Fixtures$5,000 – $10,000
Equipment$200,000 – $225,000
Architects and Engineering$27,500 – $32,500
Professional Services Fees$2,500 – $7,500
Opening Inventory$7,500 – $10,000
Opening Supplies$2,500 – $5,000
Computers, Telecommunications, and Security System$20,000 – $30,000
Exterior Signage$10,000 – $25,000
ServSafe® Program Tuition Cost$360
Initial Training Fee$5,000
Market Introduction$1,000 – $2,500
Insurance$5,000 – $10,000
Utility Deposits$250 – $500
Permits and Deposits$1,000 – $2,500
Lease Deposit$7,500 – $15,000
Additional Funds$25,000 – $50,000
Total$660,110 – $1,020,860

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

1

+
n.a.
n.a.
No growth
New

$40,000

$660,000

-

$1,021,000

n.a.

$3,145,000

Pro

63.3%

Pro

n.a.

Pro

Food & Beverage

Training

H&H Bagels provides comprehensive training programs to ensure franchisees and their teams are fully prepared to operate the franchise effectively. These programs include the following:

  1. Initial Training Program: This is mandatory for franchisees (or their owners) and required personnel. It occurs prior to or around the time of the restaurant opening and can be delivered in-person, virtually, or in hybrid formats. Franchisees must pay a $5,000 Initial Training Fee and cover additional costs such as transportation, lodging, meals, and wages.
  2. Pre-Training Requirements: Before starting the Initial Training Program, participants may be required to complete third-party certification programs like ServSafe®, web-based modules specified by H&H Bagels, and attend virtual marketing and finance meetings. Proof of completion and comprehension of these prerequisites must be presented at the start of the training.
  3. Retraining Program: If a participant fails to complete the Initial Training Program satisfactorily, they may be allowed to re-attend at Franchisor's discretion. All associated costs for this retraining, including a per diem training fee and other expenses, are the responsibility of the franchisee.
  4. Subsequent Employee Training: Any individuals later hired into management or critical roles must also attend training as required by H&H Bagels. This is evaluated and enforced at the franchisor’s discretion.
  5. Additional Training Programs: Franchisees, their managers, and other designated personnel may be required to attend further courses, seminars, and programs periodically. These could be conducted at various locations determined by the franchisor and incur training fees and related costs.

Territory Protection

H&H Bagels does not offer territory protection to its franchisees under the Franchise Agreement. Franchisees are not granted an exclusive territory, meaning that the franchisor may open other locations or authorize others to operate nearby.

This could include competition from other H&H Bagels outlets, company-owned stores, or different distribution channels managed by the franchisor. The agreement explicitly states that there are no restrictions preventing H&H Bagels from establishing additional franchises or competitive operations within proximity to an existing franchisee.

As a result, franchisees may face market overlap and competition that could impact their sales. This open-territory approach emphasizes brand expansion flexibility for H&H Bagels but requires franchisees to maintain competitive standards.

Number of units

2025
Franchised units

0

0

1

Company-owned units

3

3

5

Total units

3

3

6

Competitors

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$37,000
-
$186,000
Franchisees
154
+
-7%
-7%

The Pretzel Twister

Investment required
$122,000
-
$339,000
Franchisees
24
+
-14%
-14%

Philly Pretzel Factory

Investment required
$135,000
-
$407,000
Franchisees
146
+
-3%
-3%

Bang Cookies

Investment required
$235,000
-
$712,000
Franchisees
0
+
n.a.
n.a.

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