House of Bread Franchise FDD, Profits & Costs (2025)
House of Bread traces its roots to 1996, when Sheila McCann decided to leave her law career and open a bakery in San Luis Obispo, California. Her goal was to revive the tradition of handmade, scratch-baked bread made with simple, wholesome ingredients.
The company continues to operate from its original hometown and expanded into franchising two years later, in 1998. The brand operates as a bakery-café, producing fresh bread, pastries, and rolls in-house every day. Alongside its baked goods, locations offer sandwiches, soups, and salads, creating a full café experience centered around high-quality bread.
Its business model spans retail sales, catering, and some wholesale activity, enabling franchisees to reach a broad customer base.
What sets House of Bread apart is its insistence on baking everything on the premises from raw ingredients rather than using frozen, pre-made, or partially baked dough.
Initial Investment
How much does it cost to start a House of Bread franchise? It costs on average between $198,000 – $584,000 to start a House of Bread franchised restaurant.
This investment covers expenses such as build-out, bakery equipment, ingredients, and the funds needed to operate during the early weeks of business. The total amount varies based on several factors, including the size and layout of the bakery-café, the real estate market in the chosen area, and whether the franchisee decides to lease or acquire the space.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $35,000 |
| Travel and Living Expense While Training | $1,000 – $5,000 |
| Equipment | $45,000 – $170,000 |
| Build-Out and Lease | $74,000 – $326,000 |
| Pre-Opening and First-Year Advertising | $15,000 |
| Marketing Materials | $5,000 |
| Miscellaneous Opening Expense | $5,000 – $8,000 |
| Informational System | $8,000 |
| Legal, Accounting, Professional Fees | $1,000 – $3,000 |
| Food Supplies | $9,000 |
| Total Estimated Investment | $198,000 – $584,000 |
Average Revenue (AUV)
How much revenue can you make with a House of Bread franchise? A House of Bread franchised business makes on average $786,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Franchise Disclosure Document
Frequently Asked Questions
How many House of Bread locations are there?
As of the most recent available information, House of Bread operates a total of eight locations. Seven of these are franchise-owned, while one location is company-owned. This footprint reflects a modest but steady presence built around its bakery-café model.
What is the total investment required to open a House of Bread franchise?
The total investment required to open a House of Bread franchise ranges from $198,000 to $584,000.
What are the ongoing fees for a House of Bread franchise?
The ongoing fees for a House of Bread franchise are as follows: the royalty fee is 6% of gross sales and the marketing/advertising fee is 2% of sales.
Who owns House of Bread?
House of Bread is owned by Sheila McCann, who founded the bakery café in 1996 and remains its President and CEO
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