H&H Bagels Franchise FDD, Profits & Costs (2025)
H&H Bagels has been a New York City staple since 1972, when it was founded by Helmer Toro and Hector Hernandez. Starting from a single storefront on the Upper West Side of Manhattan, the brand quickly earned a reputation for delivering classic, kettle-boiled bagels prepared with time-honored techniques.
Its corporate headquarters is now located at 1551 2nd Avenue in New York, NY. In 2021, the company introduced a national franchising initiative, signaling its expansion beyond its home city.
The first franchise shop officially opened its doors in Boca Raton, Florida, in 2024, marking a new chapter in its growth story. The H&H Bagels menu highlights its iconic bagels, made from natural, non-GMO ingredients with no artificial preservatives.
Each bagel is crafted using the traditional water-boiling method—proofed, kettle-cooked, and baked on burlap-covered boards in classic revolving ovens—ensuring the same authentic taste that made the brand famous.
Initial Investment
How much does it cost to start a H&H Bagels franchise? It costs on average between $660,000 – $1,021,000 to start a H&H Bagels franchised restaurant.
This includes expenses related to construction, equipment, inventory, and the first phase of operating costs. The total investment will vary depending on several factors, such as the type of H&H Bagels location being developed, the market and city where it is established, and whether the franchisee decides to lease or buy the property.
| 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 |
Average Revenue (AUV)
How much revenue can you make with a H&H Bagels franchise? A H&H Bagels franchised restaurant makes on average $3,145,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
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Frequently Asked Questions
How many H&H Bagels locations are there?
As of the latest data, H&H Bagels operates five company-owned locations and one franchise-owned location in the US.
What is the total investment required to open a H&H Bagels franchise?
The total investment required to open a H&H Bagels franchise ranges from $660,000 to $1,021,000.
What are the ongoing fees for a H&H Bagels franchise?
H&H Bagels franchisees pay a royalty fee of 6% of gross sales and a marketing fee of 2% of gross sales, both collected on an ongoing basis.
What are the financial requirements to become a H&H Bagels franchisee?
To become an H&H Bagels franchisee, you need a minimum net worth of $1,000,000 and at least $500,000 in liquid capital.
How much can a H&H Bagels franchise owner expect to earn?
The average gross sales for a H&H Bagels franchise are approximately $3.15 million per location. Assuming a 15% operating profit margin, $3.15 million yearly revenue can result in $473,000 EBITDA annually.
Who owns H&H Bagels?
The H&H Bagels franchise is owned by Jay Rushin.
Disclaimer
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