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Bruegger’s and Bruegger's Bagels

Bruegger’s and Bruegger's Bagels

19 locations

Bruegger’s and Bruegger's Bagels currently operates 19 locations (19 franchised). PeerSense FPI health score: 34/100.

Total Units

19

19 franchised

FPI Score
High
34

Proprietary PeerSense metric

Limited
Capital Partners
15lenders available

Active capital sources verified for Bruegger’s and Bruegger's Bagels financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

Growing (10-24 loans)

High Confidence
34out of 100
Limited

SBA Lending Performance

SBA Default Rate

8.7%

2 of 23 loans charged off

SBA Loans

23

Total Volume

$8.3M

Active Lenders

15

States

9

What is the Bruegger’s and Bruegger's Bagels franchise?

The Brueggers And Brueggers Bagels franchise, despite its name suggesting a focus on specific culinary offerings, has established itself as a significant player within the broader full-service restaurant industry, demonstrating a versatile business model that extends beyond initial perceptions to encompass a wide array of services. Founded by brothers Eric and Shalom Laytin, who initially formed Auto Brakes, Inc. in February 1982, the company evolved into the recognized Brueggers And Brueggers Bagels franchise in October 1983, with some historical accounts also citing June 1983 as a pivotal founding month. This pioneering enterprise began its journey as one of the first specialty shops to concentrate exclusively on a core service in Tucson, Arizona, a testament to its early vision and strategic market entry. Operating as a privately held corporation, the company maintains its headquarters at 6179 E. Broadway Blvd., Tucson, AZ, serving as the central hub for its extensive network. The overarching ownership of the Brueggers And Brueggers Bagels franchise now rests with GB Auto Service, Inc., underscoring its integration into a larger automotive service conglomerate. Leadership is steered by CEO Israel Linder, supported by key executives including Alex Corrales as Chief Operating Officer and Jerry Reyes as Director of Operations, who collectively uphold the brand's commitment to its distinctive "Honest Brake" philosophy. This foundational principle emphasizes unwavering transparency and aims to cultivate deep customer trust, a cornerstone of its market position that differentiates it from competitors. The Brueggers And Brueggers Bagels franchise's market strategy centers on delivering comprehensive solutions, ranging from routine oil changes and precise wheel alignments to intricate engine diagnostics, ensuring a broad appeal to vehicle owners seeking reliable and trustworthy service.

The industry landscape in which the Brueggers And Brueggers Bagels franchise operates is characterized by its inherent stability and essential nature, driven by consistent consumer demand that remains resilient across various economic cycles. The automotive repair sector, including specialized services, benefits significantly from the ever-increasing number of vehicles on the road and the perpetual need for both routine maintenance and unexpected repairs. This creates a predictable and recurring revenue stream, making it a robust and attractive opportunity for investors. The Automotive Braking System Market, a core segment of the broader industry relevant to the offerings of the Brueggers And Brueggers Bagels franchise, was valued at an estimated USD 32.59 billion in 2024. Projections indicate substantial growth, with forecasts suggesting an expansion to USD 54.54 billion by 2035, exhibiting a Compound Annual Growth Rate (CAGR) of 4.7% over the 2025-2035 period. Other credible estimates place the Automotive Brake System Market size at USD 50.05 billion in 2025, with an anticipated rise to USD 79.99 billion by 2035, reflecting a CAGR of 4.8% between 2026 and 2035. In 2026 alone, the industry size is projected to reach USD 52.21 billion. Furthermore, the global automotive brake system market registered a valuation of USD 23.25 billion in 2023, with expectations for a CAGR of approximately 6.1% during the 2024-2030 forecast window. The aftermarket for automotive components broadly is poised to exceed USD 400 billion by 2025, with braking systems constituting a substantial and critical portion of this expansive market. These robust market indicators underscore the sustained demand and significant growth potential within the segment served by the Brueggers And Brueggers Bagels franchise.

Investing in a Brueggers And Brueggers Bagels franchise involves a financial commitment that varies significantly based on factors such as the specific Franchise Disclosure Document (FDD) year and whether the venture entails establishing a completely new facility or converting an existing automotive repair business. For instance, the initial franchise fee, a foundational component of the investment, has been cited between $0 and $22,950, according to 2025/2026 FDD data. Older records, such as the 2016 FDD, indicated an initial franchise fee of up to $22,950, while broader estimates have placed this fee within a range of $30,000 to $50,000, reflecting potential adjustments over time or depending on specific terms. For franchisees pursuing a multi-store development model, a specific amendment mandates a development fee equivalent to 50% of the initial franchise fee for each additional store beyond the first. This fee is subsequently credited against the initial franchise fee for each store as it progresses through the development phases. The total initial investment required for a start-up Brueggers And Brueggers Bagels franchise is substantial, ranging from $1,494,000 to $2,913,000, according to the 2025/2026 FDD. This comprehensive figure covers a wide array of essential expenditures, including costs associated with facility build-out, the acquisition of specialized automotive repair equipment, the initial stock of parts inventory, and crucial start-up operating capital. A detailed breakdown of specific expenditures for a new start-up includes the initial franchise fee ($0 – $22,950), travel expenses ($200 – $1,000), living expenses during training ($2,500 – $4,500), real estate acquisition or leasehold improvements ($1,250,000 – $2,500,000), signage ($23,300 – $30,000), equipment ($125,000 – $200,000), inventory ($20,200 – $30,000), supplies ($2,500 – $10,000), utility deposits ($1,000 – $5,000), insurance ($1,000 – $5,000), professional services ($1,500 – $2,500), licenses and permits ($500 – $2,500), advertising ($16,000 – $25,000), and additional operating funds for the initial three months ($50,000 – $76,000). These figures culminate in the total estimated range of $1,493,700 to $2,913,450. Earlier FDD data from 2016 and 2020 presented different investment ranges, specifically $227,200 to $652,150 for a start-up business. For individuals converting an existing automotive repair business into a Brueggers And Brueggers Bagels franchise, the 2020 FDD indicated a total initial investment between $167,450 and $298,950. The estimated required liquid capital for a franchisee typically starts at a minimum of $370,000, with the exact figure influenced by location, build-out specifics, and the chosen operational model. Furthermore, the 2016 FDD specified a working capital requirement ranging from $20,000 to $40,000, essential for covering initial operational expenses.

The Brueggers And Brueggers Bagels franchise is committed to providing a robust and structured training program designed to equip its franchisees and their designated managers with the essential knowledge and operational proficiencies required for successful business management. The initial training program, offered at no additional cost for the franchisee and one manager, spans a comprehensive two-week period. This intensive program integrates both classroom instruction and hands-on, on-site training conducted at the corporate training facility, ensuring participants gain a thorough and practical understanding of the store’s intricate systems and daily operational protocols. Specific details from some sources indicate this training comprises approximately 80 hours of practical, on-the-job experience complemented by 40 hours of classroom-based learning, culminating in a total of 130 hours of instruction. Should a franchisee require training for more than one additional manager, they are responsible for covering the associated training fees for each subsequent participant. Beyond the initial training, franchisees receive extensive ongoing support, critical for sustained success. This comprehensive assistance includes expert guidance on site selection, strategic lease negotiation, optimal store design and layout, continuous training on operational best practices, and targeted grand opening marketing strategies to ensure a strong market launch. Franchisees also benefit from perpetual access to detailed operational manuals and a wealth of ongoing support resources, facilitating smooth and efficient daily management. A cornerstone of the Brueggers And Brueggers Bagels franchise's service quality is its commitment to staffing with ASE (Automotive Service Excellence) certified technicians and managers, who undergo continuous training to deliver consistently high-quality, reliable, and expert automotive services to customers. The franchise further extends its support to include comprehensive computer and technology assistance, ensuring franchisees can effectively leverage modern tools for business management and customer service.

The Brueggers And Brueggers Bagels franchise, in line with many leading franchisors, does not typically disclose specific financial performance representations (FPRs) within Item 19 of its Franchise Disclosure Document. Item 19 of an FDD offers franchisors the option to provide detailed information concerning outlet sales, operational costs, profit margins, or potential losses, but there is no legal mandate for them to do so. Consequently, prospective franchisees considering the Brueggers And Brueggers Bagels franchise are strongly advised to proactively seek out and obtain this critical financial performance data directly from current and former franchisees within the system. The contact information for these individuals can typically be found in Item 20 or within Exhibits E and F of the official FDD, providing a transparent pathway for due diligence. It is paramount for potential investors to understand that revenue figures, while indicative of sales volume, do not directly equate to profit. Operating costs can exhibit considerable variability based on factors such as location, operational efficiency, local market conditions, and management effectiveness, all of which can significantly impact net profitability. Therefore, a thorough investigation into actual operating expenses is essential. While specific outlet-level financial data is not disclosed, the overall company revenue for the parent entity associated with the Brueggers And Brueggers Bagels franchise is estimated to fall within a substantial range of $100 million to $500 million, indicating a significant presence and operational scale within the automotive repair industry. Beyond initial investment, franchisees are subject to ongoing fees that support the system and brand. A key recurring expense is the royalty fee, typically calculated as 5% of monthly sales, though some sources indicate a potential range of 5% to 7%. Additionally, franchisees contribute to a marketing and advertising fund, often referred to as the national brand fund, with fees typically amounting to 1% of sales or, in some instances, up to 6% of sales. These ongoing fees are designed to fund system-wide support, brand development, and collective marketing initiatives, contributing to the sustained growth and visibility of the Brueggers And Brueggers Bagels franchise network.

The growth trajectory of the Brueggers And Brueggers Bagels franchise reflects a deliberate expansion strategy, commencing with the introduction of franchising opportunities in 1991 through Brake Masters Systems, Inc., the entity overseeing franchise development. The inauguration of the very first franchise store in Sierra Vista in August 1994 marked a significant milestone in the brand's distributed growth. Currently, the Brueggers And Brueggers Bagels franchise operates a network of over 95 locations, a figure that encompasses both company-owned units and independently owned franchised establishments. Some broader industry sources further suggest the total store count exceeds 100 units, highlighting its considerable footprint. As of 2024, the Brueggers And Brueggers Bagels franchise system maintained a total of 107 units, with 27 of these being franchised-owned operations and a substantial 80 units remaining under company ownership. In 2016, the network included 29 franchised Brueggers And Brueggers Bagels locations across the United States, demonstrating consistent franchise expansion. The franchise's operational presence is predominantly concentrated across the Southwestern United States, establishing strong market penetration in key states such as Arizona, California, Nevada, New Mexico, and Texas. Certain reports also indicate a presence in Nebraska and Utah, signifying a gradual geographic diversification. The West region accounted for the largest concentration of franchise locations in 2016, with 29 units, underscoring its strategic focus. A notable aspect of the Brueggers And Brueggers Bagels franchise model is its approach to territory protection; it does not offer exclusive territories to its franchisees. This means the franchisor retains the right to establish or authorize the development of other Brueggers And Brueggers Bagels franchise locations or company-owned stores in close proximity to existing franchised units. This policy can lead to potential competition for franchisees from both corporate-owned outlets and other franchised operations within the same market area, a factor that prospective investors must carefully consider in their market analysis and business planning.

The ideal owner for a Brueggers And Brueggers Bagels franchise is typically envisioned as a dynamic entrepreneur possessing a strong foundation of business acumen coupled with a genuine passion for the automotive service industry. While prior direct experience in automotive repair or service can certainly be advantageous, it is not a mandatory prerequisite for becoming a Brueggers And Brueggers Bagels franchise owner, largely due to the comprehensive training and support systems provided by the franchisor. Key attributes for success include a steadfast commitment to delivering exceptional quality service, a proven capability for effective operational management, and an ambitious drive to grow and expand the business within its designated market territory. These characteristics are crucial for navigating the competitive landscape and ensuring long-term profitability. Daily operations within a Brueggers And Brueggers Bagels franchise location are centered on providing a broad spectrum of automotive services, underpinned by the expertise of ASE-certified technicians and store managers. These highly trained professionals are proficient in accurately diagnosing vehicle issues and effectively advising customers on necessary services, upholding the brand's commitment to transparency and trust. The overarching "Honest Brake" philosophy deeply influences how the Brueggers And Brueggers Bagels franchise recruits, trains, and develops its team members, fostering a culture of integrity and customer-centric service. Franchisees may encounter challenges, however, including the necessity of skillfully navigating local market competition, which requires a keen understanding of competitor offerings, pricing strategies, and local consumer preferences. The operational complexity inherent in managing a service-oriented business, encompassing the effective deployment of skilled technicians, the meticulous maintenance of service bays, and efficient inventory control, demands consistent and diligent attention from the franchisee. Furthermore, a reliance on specific supply chains for parts and materials is an important consideration, as potential disruptions in these channels could impact service turnaround times, operational costs, and ultimately, customer satisfaction.

The Brueggers And Brueggers Bagels franchise represents a compelling investor opportunity within the automotive repair sector, having maintained a robust and enduring presence for over four decades. The brand’s affiliation with its parent company, GB Auto Service, Inc., provides a strong corporate backing and access to broader resources. While the Brueggers And Brueggers Bagels franchise emphasizes its "Honest Brake" philosophy, committing to transparent communication and fostering customer trust by avoiding aggressive sales tactics, it is important for prospective investors to be aware of the company’s past regulatory challenges. In 2002, the California Department of Consumer Affairs initiated accusations of fraud against eight shops operating under the Brueggers And Brueggers Bagels brand, which subsequently led to license revocations for those specific locations. Additionally, the Better Business Bureau of Southern Arizona recorded 19 customer complaints over a three-year period, and an investigation by ABC news identified instances where the company charged slightly more than advertised for oil changes, an issue management attributed to a computer error. Despite these historical issues, the inherent advantages of acquiring a Brueggers And Brueggers Bagels franchise are significant. It offers entry into a proven, recession-resistant market, backed by a reputable brand and comprehensive franchisee support systems. Franchisees benefit from multiple diversified revenue streams, a well-established brand identity, and access to proven operational systems, along with a broad and appealing service menu. The brand's FPI Score of 34 further indicates its standing within the franchise community. These elements collectively contribute to a solid investment proposition for those seeking to enter the resilient automotive service industry. Explore the complete Brueggers And Brueggers Bagels franchise profile on PeerSense to access the full suite of independent franchise intelligence data.

FPI Score

34/100

SBA Default Rate

8.7%

Active Lenders

15

Key Highlights

Low SBA default rate (8.7%)

Data Insights

Key performance metrics for Bruegger’s and Bruegger's Bagels based on SBA lending data

SBA Default Rate

8.7%

2 of 23 loans charged off

SBA Loan Volume

23 loans

Across 15 lenders

Lender Diversity

15 lenders

Avg 1.5 loans per lender

Payment Estimator

Loan Amount$400K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$5,176

Principal & Interest only

Locations

Bruegger’s and Bruegger's Bagelsunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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Bruegger’s and Bruegger's Bagels