The offering circular states that the initial franchise fee is $25,000 for a single, full producing Manhattan Bagel Restaurant. In addition, before the franchisee opens, the franchisee will need to purchase proprietary products and marketing materials from the franchisor or from one of its affiliates. The offering circular states that the cost of these items is likely to total approximately $10,000 to $20,000.

The total initial investment for a restaurant is estimated by the franchisor to range from $492,050 to $893,350. In addition, if the franchisee enters into a Deposit Agreement, the franchisee will be asked to provide a deposit in the amount of $10,000. Unless the franchisee terminates the Deposit Agreement or it expires, this amount will be credited to the franchisee’s initial franchise fee if the franchisee signs a franchise agreement.

In its offering circular, the franchisor also offers to enter into area development agreements with qualified parties. The franchisee will establish and operate an agreed-upon number of Manhattan Bagel restaurants at specific locations under the terms of a separate franchise agreement for each location. The development fee will be $10,000 for each restaurant, meaning that the fee will vary depending on the number of restaurants to be developed. However, the offering circular also states that the fee may be credited toward the franchise fee if the development schedule is satisfied.