Jeff's Bagel Run Franchise
Cost, fees, owner earnings, closure rate and litigation for a Jeff's Bagel Run franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Jeff's Bagel Run discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Affiliate-operated stores only; 8 stores analyzed. Monthly sales $78K-$96K (months 1-12). Net profit 6.8%-13.5%. 2025 annual sales $821K-$1.42M with net profit 2.4%-18.5%. Excludes 4 affiliate stores due to lack operational control/data.
What a Jeff's Bagel Run franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $30,000 | 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 | $575,722 – $997,972 | Item 7 — franchisor's own low/high estimate |
6% royalty + 2% advertising fee daily/monthly. Multiple ancillary fees including $1,000 site review, transfer/assignment 25% of franchise fee, $2,500 architect fee.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Jeff's Bagel Run system size and owner turnover
| Total outlets | 25 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
Only 1 franchised outlet open 2025; rapid affiliate store sales indicate early-stage system.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Jeff's Bagel Run worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $575,722 | about average (median $481,500) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 1.3%) |
| 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 Jeff's Bagel Run
The franchisor's framing: Affiliate-operated stores only; 8 stores analyzed. Monthly sales $78K-$96K (months 1-12). … 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
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Jeff's Bagel Run franchise — frequently asked
- How much does a Jeff's Bagel Run franchise cost?
- The FDD lists a total initial investment of about $575,722–$997,972, including a $30,000 initial franchise fee.
- How much do Jeff's Bagel Run franchise owners make?
- Affiliate-operated stores only; 8 stores analyzed. Monthly sales $78K-$96K (months 1-12). Net profit 6.8%-13.5%. 2025 annual sales $821K-$1.42M with net profit 2.4%-18.5%. Excludes 4 affiliate stores due to lack operational control/data. We grade this disclosure C for honesty.
- What are the Jeff's Bagel Run franchise fees?
- Jeff's Bagel Run's FDD discloses a $30,000 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% advertising fee daily/monthly. Multiple ancillary fees including $1,000 site review, transfer/assignment 25% of franchise fee, $2,500 architect fee.
- What is the Jeff's Bagel Run franchise profit margin?
- Jeff's Bagel Run does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Affiliate-operated stores only; 8 stores analyzed. Monthly sales $78K-$96K (months 1-12). Net profit 6.8%-13.5%. 2025 annual sales $821K-$1.42M with net profit 2.4%-18.5%. Excludes 4 affiliate stores due to lack operational control/data. 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 Jeff's Bagel Run franchise failure rate?
- Only 1 franchised outlet open 2025; rapid affiliate store sales indicate early-stage system.
- How many Jeff's Bagel Run locations are there?
- Jeff's Bagel Run's FDD reports 25 total outlets, with 0 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 Jeff's Bagel Run have complaints or lawsuits?
- Jeff's Bagel Run 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 Jeff's Bagel Run franchise worth it?
- It depends on the numbers, not the pitch. Jeff's Bagel Run scores C on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Jeff's Bagel Run or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.