H&H Bagels

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

H&H Bagels provides authentic New York-style bagels, offering a variety of flavors and spreads, with a focus on traditional methods and fresh ingredients.

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 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.

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
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

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Franchise Disclosure Document

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Competitors

Below are some of

H&H Bagels

key competitors in the

Baked Goods

sector.

Started franchising
Franchisees

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Franchise fee

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Royalty fee

?

Investment

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Revenue (AUV)

?

Gross Profit

?

EBITDA

?

Home-based

?

Passive investment

?

FDD
H&H Bagels
2021
1
+
n.a.
n.a.
$40,000
6.00%

$660,000

-

$1,021,000

n.a.

$3,145,000

Upgrade

63.3%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2006
154
+
-7%
-7%
$30,000
n.a.

$37,000

-

$186,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
1998
24
+
-14%
-14%
$25,000
6.00%

$122,000

-

$339,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2004
146
+
-3%
-3%
$35,000
6.00%

$135,000

-

$407,000

Upgrade

n.a.

$471,000

74.0%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
2023
0
+
n.a.
n.a.
$55,000
6.00%

$235,000

-

$712,000

Upgrade

n.a.

$579,000

76.0%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2006
32
+
-18%
-18%
$40,000
5.00%

$1,090,000

-

$2,335,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2015
2
+
-33%
-33%
$35,000
n.a.

$165,000

-

$1,152,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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?

Profit margin

?

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Watchlist

?

Priority support

?

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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.

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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Franchisees

?

154
+
-7%
-7%
Investment

?

$37,000 - $186,000

The Pretzel Twister

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?

24
+
-14%
-14%
Investment

?

$122,000 - $339,000

Philly Pretzel Factory

Franchisees

?

146
+
-3%
-3%
Investment

?

$135,000 - $407,000

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Franchisees

?

0
+
n.a.
n.a.
Investment

?

$235,000 - $712,000

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