If you want to start a bakery business but are worried about popularity and promotion, you must consider starting a bakery franchise. If you do not feel confident about starting a bakery business from scratch, a franchise is the best option. Furthermore, the stability of the market is also an advantageous factor for new franchises. However, despite being a stable industry, the growth is stagnant.
In this article, you will learn about how to start a bakery franchise in the United States. Apart from that, the article discusses the major bakery franchises in the country, as well as their associated costs. In addition to that, you will also get a step-by-step guide on how to start your own bakery franchise. Hence, to learn more, read on through to the end of the article.
Starting a Bakery Franchise: A General Overview
Even though bakery franchises are not booming in the US, they are still viable and stable options. Currently, despite a flat growth curve, there has been an increase in the popularity of niche concepts in bakery franchises. Furthermore, some franchises are even coming out with healthier options for bakeries.
Hence, when you are looking for bakery franchises, it is better to look at certain aspects. Some of these include:
- The initial franchise fees of the bakery franchise.
- Check whether the brand is established and has a higher brand recognition. Hence, you will have access to more number of customers from the start.
- Choose a franchise business that offers training and support to run your bakery business and maintain standards.
Therefore, to start a bakery franchise, you will need to do proper research on the market. This will help you to have a good idea of trends. Hence, you can find out where you will be able to work in your own area. As a result, you can make a better choice when it comes to choosing a franchise.
Furthermore, you must get a franchise attorney. According to Business News Daily, “Before you buy a franchise, consider hiring a franchise attorney, who could serve as an excellent resource during the due diligence process. In fact, having a franchise attorney assist in reviewing and explaining key provisions in the franchise agreement is imperative to ensure you are fully educated about the obligations and responsibilities you are undertaking as a franchisee.”
Top 10 Bakery Franchise Options to Look for in 2024
Although franchising is a great way to start your business, it is also important for you to research what is best for you. After all, you will be spending thousands of dollars to buy a franchise to start your business. Apart from that, you must also be aware of the fact that owning a franchise does not work in the same way as a startup does. Here, you will be working with another idea and brand that is already quite successful.
The following are some of the following bakery franchise options to choose from in 2024:
1. Dunkin’
Here are some essential details about the Dunkin’ franchise:
| Parent Company | Inspire Brands |
| Franchise started | 1955 |
| Number of franchisees | 13,372 (data from 2023) |
| Initial Franchise Fee | $40,000 – $90,000 |
| Initial Investment | $437,500 – $1,809,500 |
| Cash Requirement | $250,000 |
| Net worth requirement | $500,000 |
| Royalty Fees | 5.9% |
| Ad Royalties | 5% |
| Agreement Term | 20 years |
Dunkin’ (previously Dunkin’ Donuts) is one of the biggest bakery franchises in the world. Currently, it offers more than seventy different varieties of donuts. Apart from that, it offers bagels, cold coffee drinks, sandwiches, and more. The brand changed its name as it started to increase its focus on other bakery items as well.
Pros
- Offers quality support
- Good brand recognition
- String business model
- Access to various resources and markets
Cons
- The application process is quite rigorous
- Competition is strong in the United States
2. Cinnabon
The following are the essential franchise information to learn about Cinnabon:
| Parent Company | Focus Brands LLC |
| Franchise started | 1986 (data from 2023) |
| Number of franchisees | 1882 |
| Initial Franchise Fee | $5,500 – $30,500 |
| Initial Investment | $60,300 – $621,400 |
| Cash Requirement | $120,000 |
| Net worth requirement | $300,000 |
| Royalty Fees | 6% |
| Ad Royalties | 1.5%-3% |
| Agreement Term | 20 years |
Having more than 1800 stores around the world, Cinnabon is growing at a fast rate. Currently, it is also one of the most popular sweets and bakery franchises in the world. Basically, Cinnabon is famous for its signature cinnamon roll. Additionally, it also provides other items like cakes, coffee, churros, milkshakes, etc. However, most of the Cinnabon locations are near airports, malls, rest stops, and related locations.
Pros
- You will have access to training materials.
- The brand helps you with marketing.
- Since the brand is present in more than 50 countries, it has good brand recognition.
- It has a good purchasing power.
- They help you with the construction of real estate.
- The support team is helpful and dedicated.
Cons
- There is no exclusive territory protection.
- You will not have access to financing options.
- You need to have experience of working with restaurant chains.
3. Paris Baguette
Here are some essential details about the Paris Baguette franchise:
| Parent Company | Paris Baguette Family Inc. |
| Franchise started | 1988 |
| Number of franchisees | 3826 (data from 2023) |
| Initial Franchise Fee | $50,000 |
| Initial Investment | $652,565 – $1,750,900 |
| Cash Requirement | $500,000 |
| Net worth requirement | $1,500,000 |
| Royalty Fees | 5% |
| Ad Royalties | 2% |
| Agreement Term | 10 years |
Despite having more than 3800 locations around the world, Paris Baguette is present in only 82 locations in the United States (as of the start of 2023). The franchise offers you not only strong branding opportunities but also good profitability. Generally, Paris Baguette offers baked goods, pastries, cakes, sandwiches, beverages, coffee, and more.
Pros
- A strong global brand
- Profitable business
- Good access to training material
Cons
- Not many locations in the US.
- Franchising can take a significant amount of time.
4. Auntie Anne’s
The following are the essential franchise information to learn about Auntie Anne’s:
| Parent Company | Focus Brands LLC |
| Franchise started | 1989 |
| Number of franchisees | 1985 (data from 2023) |
| Initial Franchise Fee | $10,500 – $35,500 |
| Initial Investment | $104,575 – $572,100 |
| Cash Requirement | $120,000 |
| Net worth requirement | $300,000 |
| Royalty Fees | 7% |
| Ad Royalties | 1%-3% |
| Agreement Term | 20 years |
5. Nothing Bundt Cakes
Here are some essential details about Nothing Bundt Cakes:
| Parent Company | Nothing Bundt Franchising LLC |
| Franchise started | 2006 |
| Number of franchisees | 517 (as of 2023) |
| Initial Franchise Fee | $35,000 |
| Initial Investment | $551,300 – $978,210 |
| Cash Requirement | $250,000 |
| Net worth requirement | $1,000,000 |
| Royalty Fees | 6% |
| Ad Royalties | 5% |
| Agreement Term | 10 years |
In comparison to the initial investment, there are a lot of changes to make profits with Nothing Bundt Cakes. Basically, this company sells handcrafted cakes. Additionally, they also provide items for decorations, party supplies, and gifts. Hence, this shop is a one-stop shop for parties and celebrations.
Pros
- Help to get funding for a franchise.
- Ongoing support and access to training material.
- Based on your location, you can choose your store design.
- You can get the right to operate in an exclusive territory.
- They help you to choose your location
Cons
- There is no option for passive ownership.
- Does not offer home-based opportunities.
- Royalty fees are high.
- High competition in the market.
6. Shipley Do-Nuts
The following are the essential franchise information to learn about Shipley Do-Nuts:
| Parent Company | Peak Rock Capital |
| Franchise started | 1987 |
| Number of franchisees | 344 (as of 2023) |
| Initial Franchise Fee | $40,000 |
| Initial Investment | $655,000 – $1,339,500 |
| Cash Requirement | $225,000 |
| Net worth requirement | $750,000 |
| Royalty Fees | 5% |
| Ad Royalties | 3% |
| Agreement Term | 15 years |
According to Nation’s Restaurant News – “Shipley Do-Nuts has several pieces in place to exceed those numbers. When Dekker came on board, for instance, one of his first moves was to implement a marketing co-op with an affirmative vote from the company’s franchisees. With that co-op in place, the company quickly ramped up its innovation engine, launched a loyalty program, and added an online ordering systemwide.”
Generally, Shipley sells 60 different types of donuts, as well as beverages. Due to its focus on quality, it is in high demand.
7. Pretzelmaker
Here are some essential details about the Pretzelmaker franchise:
| Parent Company | FAT Brands Inc. |
| Franchise started | 1992 |
| Number of franchisees | 220 (as of 2023) |
| Initial Franchise Fee | $25,000 |
| Initial Investment | $273,500 – $385,500 |
| Cash Requirement | $500,000 |
| Net worth requirement | $1,500,000 |
| Royalty Fees | 7% |
| Ad Royalties | 4% |
| Agreement Term | 15 years |
Although Pretzelmaker had to close down many locations, it is still one of the most popular bakery franchise options for you, especially if you have a tight budget. Basically, it is a Georgia-based restaurant that serves hand-rolled pretzels, smoothies, beverages, etc. Furthermore, the company also offers beverages to its customers.
Pros
- You can choose your business model.
- A well-coordinated supply chain.
- Good support and training to franchisees.
Cons
- You cannot run a part-time business.
- Does not grant exclusive territory.
- No assistance for finances.
- High competition from other brands.
8. Wetzel’s Pretzels
The following are the essential franchise information to learn about Wetzel’s Pretzels:
| Parent Company | Wetzel’s Pretzels LLC |
| Franchise started | 1996 |
| Number of franchisees | 379 (as of 2023) |
| Initial Franchise Fee | $40,000 |
| Initial Investment | $167,900 – $683,650 |
| Cash Requirement | $50,000 – $100,000 |
| Net worth requirement | $300,000 |
| Royalty Fees | 7% |
| Ad Royalties | 1% |
| Agreement Term | 10 years |
Welzel’s Pretzel is a rapidly growing franchise business, and a franchisee has a high chance for profit. One of the best things is that the investment cost is not that high. Apart from pretzels, this company also offers hotdogs and lemonades.
Pros
- You will get a comprehensive training option and access to various learning resources.
- Since the menu is simple, the operating process is easy.
- You have flexibility with respect to locations.
- They offer you exclusive territory protection.
- There is also an option for passive investment opportunities.
Cons
- You cannot run this business as a part-time option.
- There is no financing option.
- High competition in the marketplace.
9. Randy’s Donuts
Here are some essential details about Randy Donuts that you need to know to buy a franchise:
| Parent Company | Quad Queens LLC |
| Franchise started | 2019 |
| Number of franchisees | 32 (as of 2023) |
| Initial Franchise Fee | $35,000 |
| Initial Investment | $606,000 – $1,192,000 |
| Cash Requirement | $300,000 |
| Net worth requirement | $1,000,000 – $5,000,000 |
| Royalty Fees | 5% |
| Ad Royalties | 1%-4% |
| Agreement Term | 10 years |
Although a new company, it is increasing its franchise operations at a fast rate. Hence, there is a high chance for profitability. However, the company will depend a lot on the effort of your business. Hence, this is a great opportunity to experiment with your processes, and also use the tried-and-tested strategies of the franchisor as well.
Apart from that, the location, marketing strategies, store design, and customer services will play a big role in your business’s success.
10. Great American Cookies
The following are the essential franchise information to learn about Great American Cookies:
| Parent Company | FAT Brands Inc. |
| Franchise started | 1977 |
| Number of franchisees | 410 (as of 2023) |
| Initial Franchise Fee | $25,000 |
| Initial Investment | $195,800 – $412,150 |
| Cash Requirement | $500,000 |
| Net worth requirement | $1,500,000 |
| Royalty Fees | 6% |
| Ad Royalties | 4% |
| Agreement Term | 15 years |
This is the largest retail cookie chain in the United States. Hence, if you choose this franchise, you have a lot of opportunities for growth. Since the company focuses a lot on innovation, development, and customer services, you will need to do that as well.
Pros
- Access to extensive training programs.
- Help with real estate and construction.
- Support for operations and management.
- Exclusive territory protection.
Cons
- There are no passive investment options, and you cannot run this business as a part-time option.
- You cannot run this business from a mobile facility or your residence.
- No help with financing.
Wrapping Up
Before you choose a bakery franchise, make sure you are aware of your location, finances, and your ability to deal with certain bakery items. Furthermore, you must also consult with a franchise attorney before you buy a franchise to start your business.
Do you know about other great bakery franchise options (as of 2024)? Consider sharing some names in the comments section below.
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