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Franchise FAQ

Frequently Asked
Questions

Everything you need to know about owning a Dan's Bagels franchise. Can't find your answer? Reach out to our franchise team directly.

We are not looking for investors. Instead, we are looking for owner/operators who will work full-time and provide 100% dedication to our mission, their livelihood and success in building their own personal and business legacy.

We have designed a comprehensive training program for Franchise owners & operators; however, prior restaurant experience is strongly recommended as we are exclusively an Owner/Operator model.

Your total net worth should exceed $400,000 of which $100,000 is liquid.

The initial franchise fee is currently $35,000, payable at the time the Franchise Agreement is signed.

The initial Franchise Agreement term is 10 years, renewable in accordance with the current Franchise Agreement.

The franchisee finds the location with Dan's Bagels approval. Support includes site analysis and demographic evaluation.

Once the space is turned over by the landlord, the typical build-out is approximately 6-8 months.

The average location is 1,800 - 2,200 sq. feet.

The Dan's Bagels franchise fee is $35,000. This is a one-time fee paid at the signing of the franchise agreement and covers your license to operate under the Dan's Bagels brand, access to our proprietary recipes and systems, pre-opening training, site selection assistance, and opening-day marketing support.

The total initial investment to open a Dan's Bagels franchise varies based on location, real estate conditions, and build-out requirements. The franchise fee of $35,000 is one component; additional costs include leasehold improvements, equipment, signage, initial inventory, and working capital. Full investment details are provided in our Franchise Disclosure Document (FDD) during the application process.

We require a minimum net worth of $400,000 and at least $100,000 in liquid capital. These thresholds ensure franchisees have the financial stability to navigate the build-out phase and early operations without undue financial pressure. Net worth includes all assets minus liabilities; liquid capital refers to cash and assets that can be quickly converted to cash.

Royalty fee details are outlined in our Franchise Disclosure Document (FDD). Royalties are calculated as a percentage of gross sales and cover ongoing support, brand development, operational guidance, and system-wide improvements. We believe our royalty structure is competitive within the fast-casual franchise industry and reflects the comprehensive support we provide.

Marketing fund contributions are detailed in the FDD. These fees support brand-level marketing initiatives including social media campaigns, local advertising templates, seasonal promotions, and public relations efforts that benefit all franchise locations. Franchisees also develop local marketing plans with guidance from our marketing team.

Dan's Bagels does not directly provide financing. However, we have relationships with franchise-friendly lenders and SBA-approved lending institutions that are familiar with our brand and business model. Many franchisees use a combination of personal savings, SBA loans, and conventional bank financing. Our franchise development team can provide referrals to help you explore your options.

The Franchise Disclosure Document (FDD) is a legally required document that provides detailed information about the franchise system, including the franchisor's background, fees, obligations, financial performance representations, and the full franchise agreement. By law, you must receive the FDD at least 14 days before signing any agreement or paying any fees. We provide the FDD to qualified candidates during the application process.

The initial franchise term is 10 years, with options for renewal as outlined in the franchise agreement. This term provides a meaningful runway to build your business, establish your community presence, and achieve strong returns on your investment. Renewal terms and conditions are detailed in the FDD.

Restaurant experience is not required, though it can be helpful. Our comprehensive training program is designed to take motivated individuals — regardless of background — and equip them with every skill needed to run a successful Dan's Bagels location. We've found that passion, work ethic, and business acumen are often more important than industry-specific experience. Many successful franchise brands are built by operators who came from entirely different industries.

We strongly prefer owner/operators, especially for the first location. Hands-on ownership during the initial months is critical for understanding daily operations, building team culture, and establishing community relationships. Once your systems and management team are in place, the model allows for a gradual transition toward a more semi-absentee role, particularly for multi-unit operators.

Yes, multi-unit ownership is available for qualified operators who demonstrate strong performance in their first location. We offer area development agreements for franchisees who want to secure multiple territories and build out a portfolio of Dan's Bagels locations over a defined timeline. Multi-unit operators benefit from shared overhead, operational efficiencies, and priority access to new territories.

Dan's Bagels locations operate Wednesday through Sunday, 7am to 1pm (or until sold out). We are closed on Mondays and Tuesdays. This morning-focused schedule is one of the strongest advantages of the model — it significantly reduces labor costs, improves staff quality of life, and concentrates revenue into peak breakfast and lunch hours. Most operators find this schedule offers an exceptional work-life balance compared to full-service restaurant models.

A typical Dan's Bagels location operates with a lean team of 8-12 employees, including a mix of full-time and part-time staff. The morning-only hours and focused menu keep staffing needs manageable. Key roles include a store manager, bagel makers, prep and line staff, and counter service team members. Our training program covers hiring best practices, scheduling, and team management.

Dan's Bagels locations require 1,800 to 2,200 square feet of retail space, typically in a strip center or inline retail configuration. This compact footprint is intentionally small — it keeps rent manageable, optimizes workflow, and generates strong revenue per square foot. Our team provides detailed layout specifications and works with you throughout the site selection and build-out process.

The typical build-out timeline from lease signing to opening day is 6 to 8 months. This includes architectural design, permitting, construction, equipment installation, and final inspections. Timelines can vary based on local permitting processes, contractor availability, and the condition of the space. Our operations team provides oversight and guidance throughout the entire process.

Sellout culture is a core part of the Dan's Bagels identity. We bake a set quantity of bagels each day, and when they're gone, they're gone. This isn't a limitation — it's a strategic advantage. Sellout culture eliminates end-of-day food waste (protecting your food cost), creates urgency-driven demand (customers learn to arrive early), and reinforces the perception of scarcity and quality. It's one of the reasons our customers are so loyal and our brand carries so much word-of-mouth energy.

Dan's Bagels maintains an approved vendor network for all key ingredients, including specialty flour, cream cheese, and smoked fish. Our supply chain team has negotiated pricing and quality standards with each vendor to ensure consistency across all locations. Franchisees order through our approved channels, which simplifies procurement and guarantees that every location serves the same high-quality product. Local produce and perishables can be sourced locally within approved specifications.

Dan's Bagels is built on a 48-hour cold fermentation process using a 4+ year old sourdough starter — a technique that creates a depth of flavor, texture, and crust that mass-produced bagels simply cannot replicate. We kettle-boil every bagel in honey water and bake in high-heat ovens, staying true to the authentic New York tradition. Combined with our community-first culture, morning-hours model, and sellout demand, we offer a franchise experience that is fundamentally different from anything else in the market.

Our bagels begin with a proprietary sourdough starter that's been active for over four years. The dough undergoes a 48-hour cold fermentation process, which develops complex flavors and the signature chewy texture our customers love. After shaping by hand, each bagel is kettle-boiled in honey water — a traditional technique that creates the distinctive crust — before being baked at high temperature. This process cannot be shortcut or replicated with industrial methods, which is why our product stands so far apart from competitors.

Quality control starts with our training program, where every franchisee and key team member learns our exact process, from starter maintenance to final bake. We maintain detailed standard operating procedures for every product, conduct regular quality audits, and use approved ingredient suppliers to ensure consistency. Our proprietary sourdough starter is distributed from a centralized source. Mystery shops, customer feedback monitoring, and scheduled operational reviews provide ongoing quality assurance.

Our training program spans several weeks and covers every aspect of operating a Dan's Bagels location. It begins with classroom-style instruction on brand standards, operations, and business management, followed by intensive hands-on training in an operating location. You'll learn bagel-making from scratch, sourdough management, kitchen operations, customer service, POS systems, and team management. Additional training occurs on-site during your opening week with a dedicated support team.

Ongoing support includes a dedicated franchise support manager who conducts regular check-ins and site visits, access to our operations team for troubleshooting, marketing guidance and campaign materials, menu development and new product rollouts, technology support, and a network of fellow franchisees for peer collaboration. We also provide continuous training resources as our system evolves. Our goal is to be a genuine partner in your success, not just a brand licensor.

Every Dan's Bagels franchise comes with a defined protected territory. Within your territory, no other Dan's Bagels location — corporate or franchise — will be authorized to operate. Territory boundaries are determined based on population data, geographic features, and market analysis. This protection ensures you can build your customer base without competition from within the brand. Protected territory details are specified in the franchise agreement.

The typical process from initial application to franchise agreement signing takes 60 to 90 days. After submitting your application, our team reviews it within 5 business days and schedules a discovery call. Qualified candidates receive the FDD and are invited for an in-person visit to an existing location. After completing due diligence, mutual approval leads to franchise agreement execution. From there, site selection and build-out begin, with an opening timeline of 6 to 8 months.

The first step is submitting a franchise application on our website. It takes about 10 minutes to complete and asks about your background, financial qualifications, and interest in the brand. After submission, our franchise development team reviews your application and reaches out within 5 business days to schedule a discovery call. There's no commitment or obligation in submitting an application — it simply starts the conversation.

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Bring authentic, hand-rolled, kettle-boiled bagels to your community. The opportunity is here — and so are we.