Barry Bagels Franchise
Cost, fees, owner earnings, closure rate and litigation for a Barry Bagels franchise — pulled from the franchisor's own public FDD (2024), not its sales material.
Disclosure honesty
Barry Bagels discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Gross sales data for 6 legacy/company stores ($737K-$3M in 2024) and 5 franchised units ($398K-$1.3M). Excludes catering/wholesale. Limited sample, excludes underperformers.
What a Barry Bagels franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $105,000 – $514,000 | Item 7 — franchisor's own low/high estimate |
6% royalty, 2% ad fund (1% system/1% local). Additional fees: training $2K+, transfer $5K-$7K, remodeling variable.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Barry Bagels system size and owner turnover
| Total outlets | 16 |
| Ceased operations | 2 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 12.5% of outlets |
2 franchised units ceased operations in 2024 (Port Clinton OH, Clawson MI). Very small system.
From Item 20 of the FDD 2024. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Barry Bagels worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $105,000 | cheaper than most (median $481,500) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 12.5% of outlets | worse than 88% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Barry Bagels
The franchisor's framing: Gross sales data for 6 legacy/company stores ($737K-$3M in 2024) and 5 franchised units ($… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Barry Bagels franchise — frequently asked
- How much does a Barry Bagels franchise cost?
- The FDD lists a total initial investment of about $105,000–$514,000, including a $35,000 initial franchise fee.
- How much do Barry Bagels franchise owners make?
- Gross sales data for 6 legacy/company stores ($737K-$3M in 2024) and 5 franchised units ($398K-$1.3M). Excludes catering/wholesale. Limited sample, excludes underperformers. We grade this disclosure D for honesty.
- What are the Barry Bagels franchise fees?
- Barry Bagels' FDD discloses a $35,000 initial franchise fee, a 6% royalty on gross sales, a 2% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty, 2% ad fund (1% system/1% local). Additional fees: training $2K+, transfer $5K-$7K, remodeling variable.
- What is the Barry Bagels franchise profit margin?
- Barry Bagels does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross sales data for 6 legacy/company stores ($737K-$3M in 2024) and 5 franchised units ($398K-$1.3M). Excludes catering/wholesale. Limited sample, excludes underperformers. Recurring fees alone take about 8% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Barry Bagels franchise failure rate?
- 2 franchised units ceased operations in 2024 (Port Clinton OH, Clawson MI). Very small system.
- How many Barry Bagels locations are there?
- Barry Bagels' FDD reports 16 total outlets, with 2 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Barry Bagels have complaints or lawsuits?
- Barry Bagels discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Barry Bagels franchise worth it?
- It depends on the numbers, not the pitch. Barry Bagels scores D on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Barry Bagels to similar franchises
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Source: WI DFI Franchise Registration (2024). FranchiseValidate is independent and not affiliated with Barry Bagels or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.