Bruegger’s and Bruegger's Bagels

Brueggers And Brueggers Bagels operates in the full service restaurant industry, although its services focus on automotive repair. Brothers Eric and Shalom Laytin first formed Auto Brakes, Inc. in February 1982. The company became the Brueggers And Brueggers Bagels franchise in October 1983, while some historical accounts cite June 1983 as the founding month. It began in Tucson, Arizona, as one of the first specialty shops focused exclusively on a core service. The privately held corporation is headquartered at 6179 E. Broadway Blvd., Tucson, AZ. GB Auto Service, Inc. is the current owner. CEO Israel Linder leads the company with Alex Corrales, Chief Operating Officer, and Jerry Reyes, Director of Operations. Their work reflects the brand’s “Honest Brake” philosophy, which emphasizes transparency and customer trust. Services range from oil changes and wheel alignments to engine diagnostics.

Automotive repair benefits from recurring demand for maintenance and unexpected repairs, supported by the growing number of vehicles on the road. The Automotive Braking System Market was valued at an estimated USD 32.59 billion in 2024 and is projected to reach USD 54.54 billion by 2035, with a Compound Annual Growth Rate of 4.7% from 2025 through 2035. Other estimates place the Automotive Brake System Market at USD 50.05 billion in 2025, rising to USD 79.99 billion by 2035 at a CAGR of 4.8% between 2026 and 2035. The industry is projected to reach USD 52.21 billion in 2026. The global automotive brake system market was valued at USD 23.25 billion in 2023, with an expected CAGR of approximately 6.1% from 2024 through 2030. The broader automotive components aftermarket is expected to exceed USD 400 billion by 2025, with braking systems representing a substantial portion.

Investment requirements vary by FDD year and by whether the buyer develops a new facility or converts an existing automotive repair business. The initial franchise fee has been reported between $22,950 and $30,000 to $50,000 in different records. The 2016 FDD listed a fee of up to $22,950, while 2025/2026 FDD data also cited a range beginning at $22,950. For multi store development, an amendment requires a development fee equal to 50% of the initial franchise fee for each store after the first. That fee is credited toward the initial franchise fee as each store advances through development. The 2025/2026 FDD estimates total start up investment from $1,494,000 to $2,913,000. Listed costs include travel of $200 to $1,000, living expenses during training of $2,500 to $4,500, real estate acquisition or leasehold improvements of $1,250,000 to $2,500,000, signage of $23,300 to $30,000, equipment of $125,000 to $200,000, inventory of $20,200 to $30,000, supplies of $2,500 to $10,000, utility deposits of $1,000 to $5,000, insurance of $1,000 to $5,000, professional services of $1,500 to $2,500, licenses and permits of $500 to $2,500, advertising of $16,000 to $25,000, and operating funds for the first three months of $50,000 to $76,000. The detailed estimate totals $1,493,700 to $2,913,450. Earlier FDD data from 2016 and 2020 showed start up investment of $227,200 to $652,150. For a conversion, the 2020 FDD estimated $167,450 to $298,950. Required liquid capital generally begins at $370,000. The 2016 FDD listed working capital of $20,000 to $40,000.

Initial training lasts two weeks and is provided for the franchisee and one manager. It combines classroom instruction with hands on training at the corporate training facility. Some sources describe approximately 80 hours of on the job experience and 40 hours of classroom learning, for 130 hours of instruction in total. Training fees apply to each additional manager beyond the first. Ongoing support covers site selection, lease negotiation, store design and layout, operating practices, and grand opening marketing. Franchisees receive continuing access to operating manuals and support resources. Stores are expected to use ASE, or Automotive Service Excellence, certified technicians and managers who continue their training. Computer and technology assistance is also available for business management and customer service.

Buyers should seek financial data from current and former franchisees, whose contact details may appear in Item 20 or Exhibits E and F of the FDD. The parent entity’s overall revenue is estimated at $100 million to $500 million, though outlet level financial data is not disclosed. Ongoing fees include a royalty generally set at 5% of monthly sales, with some sources citing 5% to 7%. Contributions to the marketing and advertising fund, also called the national brand fund, are generally 1% of sales and may reach 6% of sales.

Franchising began in 1991 through Brake Masters Systems, Inc., the entity responsible for franchise development. The first franchise store opened in Sierra Vista in August 1994. The system now has more than 95 locations, including company owned and independently owned franchised units. Some sources place the total above 100. In 2024, the system reported 107 units, including 27 franchised owned operations and 80 company owned units. In 2016, it had 29 franchised locations across the United States. Operations are concentrated in the Southwestern United States, especially Arizona, California, Nevada, New Mexico, and Texas. Some reports also identify Nebraska and Utah. The West region had 29 units in 2016. Franchisees do not receive exclusive territories. The franchisor may open or authorize additional franchised or company owned locations near existing units, creating possible competition within the same market.

The intended owner is an entrepreneur with business knowledge and an interest in automotive service. Previous automotive repair experience can help but is not required because the franchisor provides training and support. Success depends on service quality, operating management, and the ability to grow within the market. Daily operations include vehicle diagnosis, customer recommendations, and automotive services performed by ASE certified technicians and managers. The “Honest Brake” philosophy shapes hiring, training, and customer service. Franchisees must assess local competitors, their pricing, and consumer preferences. They also manage technician scheduling, service bay upkeep, inventory, and parts supply chains. Supply disruptions may affect turnaround times, costs, and customer satisfaction.

Brueggers And Brueggers Bagels has operated in the automotive repair sector for over four decades and is affiliated with GB Auto Service, Inc. Its “Honest Brake” philosophy centers on clear communication and avoiding aggressive sales tactics, but buyers should review its regulatory history. In 2002, the California Department of Consumer Affairs accused eight shops operating under the brand of fraud, leading to license revocations for those locations. The Better Business Bureau of Southern Arizona recorded 19 customer complaints over three years. An ABC news investigation found instances in which customers were charged slightly more than advertised for oil changes, which management attributed to a computer error. The franchise offers access to the automotive repair market, franchisee support, multiple revenue streams, established operating systems, and a broad service menu. Its Loan Activity Score is 34. PeerSense provides independent franchise intelligence for buyers evaluating the brand and exploring SBA or conventional financing options. PeerSense is a commercial capital advisory firm, not a lender.