Manhattan Bagel Franchise FDD, Profits & Costs (2025)

Manhattan Bagel is a fast-casual café franchise known for its authentic New York–style bagels and a menu that spans hearty breakfast and lunch options. Founded in 1987, the company is based at 1720 S Bellaire St., Suite Skybox, in Denver, Colorado.
The brand started franchising in 1991 and has built its reputation around serving freshly boiled and baked bagels each morning. Customers can enjoy breakfast sandwiches made with fresh eggs and bacon, handcrafted lunch options, premium coffee, and full catering services.
Manhattan Bagel stands out for maintaining the traditional New York boil-and-bake technique, which gives its bagels their distinctive chewy texture. Every item is prepared to order on the grill—never preheated—ensuring quality and freshness. By offering both breakfast and lunch selections, the brand appeals to a wide range of guests throughout the day.
Initial Investment
How much does it cost to start a Manhattan Bagel franchise? It costs on average between $582,000 – $1,094,000 to start a Manhattan Bagel franchised restaurant.
This includes expenses for construction, equipment, inventory, and initial operating costs. The total investment for a Manhattan Bagel franchise varies based on several factors, such as the restaurant’s size and format, its location, and whether the franchisee decides to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $25,000 |
| Design Review Fee | $2,000 |
| Real Estate Leasing | $16,000 – $50,000 |
| Opening Inventory, Smallwares and Supplies | $10,000 – $20,000 |
| Grand Opening Marketing Promotion | $7,500 – $10,000 |
| Insurance | $4,000 – $7,500 |
| Training and Training Expenses | $1,000 – $17,200 |
| Legal & Accounting | $1,000 – $3,000 |
| Business Licenses | $500 – $5,000 |
| Security Deposits | $4,000 – $10,000 |
| Additional Funds (Three Months) | $12,000 – $50,000 |
| Sub-Total Pre-Opening Costs | $83,000 – $894,000 |
| Total Estimated Initial Investment | $582,000 – $1,093,700 |
Average Revenue (AUV)
How much revenue can you make with a Manhattan Bagel franchise? A Manhattan Bagel franchised restaurant makes on average $628,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:

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Frequently Asked Questions
How many Manhattan Bagel locations are there?
As of the latest data, Manhattan Bagel has 68 franchised restaurants and zero company-owned or licensed units.
What is the total investment required to open a Manhattan Bagel franchise?
The total investment required to open a Manhattan Bagel franchise ranges from $582,000 to $1,094,000.
What are the ongoing fees for a Manhattan Bagel franchise?
Manhattan Bagel franchisees are required to pay ongoing fees that include a royalty fee of approximately 5% of gross sales. In addition, franchisees contribute about 5% of gross sales to a marketing and advertising fund.
Who owns Manhattan Bagel?
The Manhattan Bagel franchise is owned by MTY Food Group, a Canadian restaurant franchising company that operates a large portfolio of quick-service and casual dining brands across North America.
Disclaimer
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