Kolache Factory Franchise FDD, Profits & Costs (2025)
Kolache Factory, founded in 1982 by John and Jerri Banks in Houston, Texas, is a bakery-café franchise. It introduced kolaches, a Czech pastry filled with fruits, meats, and cheeses, to the U.S. market. These pastries offer a quick, high-quality breakfast option perfect for on-the-go meals.
In 2000, Kolache Factory began franchising and now operates over 60 locations. These stores are a mix of corporate and franchise-owned, located in states like Texas, Indiana, California, and South Carolina.
The brand has earned accolades, including being named the #1 Baked Goods franchise by Entrepreneur in 2022 and 2023. Known for its innovation, Kolache Factory ranks among the top foodservice bakeries in the U.S.
Headquartered in Katy, Texas, the franchise continues to expand, focusing on fresh ingredients and modern technology to enhance the customer experience.
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Initial Investment
How much does it cost to start a Kolache Factory franchise? It costs on average between $415,000 – $697,000 to start a Kolache Factory franchise.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.
Average Revenue (AUV)
How much revenue can you make with a Kolache Factory franchise? A Kolache Factory franchise makes on average $500,000 to $1 million in revenue (AUV) per year.
This compares to $811,000 yearly revenue for similar baked goods franchises. Below are 10 Kolache Factory competitors as a comparison:
Frequently Asked Questions
How many Kolache Factory locations are there?
As of the latest available data, Kolache Factory operates over 60 locations across the United States. These locations include a mix of both company-owned and franchise-owned stores, with franchise expansion being a significant focus for the brand.
What is the total investment required to open a Kolache Factory franchise?
The total investment required to open a Kolache Factory franchise ranges from $415,000 to $697,000.
What are the ongoing fees for a Kolache Factory franchise?
Kolache Factory franchisees pay an ongoing royalty fee of 6% of gross sales and a marketing fee of 3% of gross sales. These fees support the use of the brand and contribute to advertising efforts, ensuring consistent brand promotion across all locations.
What are the financial requirements to become a Kolache Factory franchisee?
To become a Kolache Factory franchisee, you need to have a minimum net worth of $500,000 and at least $150,000 in liquid capital. These financial requirements ensure that prospective franchisees have the necessary resources to invest in and sustain the business during its startup phase.
How much can a Kolache Factory franchise owner expect to earn?
The average gross sales for a Kolache Factory franchise are approximately $1.0 million per location. Assuming a 15% operating profit margin, $1.0 million yearly revenue can result in $150,000 operating profit annually.
Who owns Kolache Factory?
Kolache Factory is a privately owned business. It was founded by John Banks and his late wife, Jerri Banks, in 1982. John Banks continues to play an active role in the company, serving as the CEO. The company remains family-run, with their daughter, Dawn Nielsen, serving as Chief Operating Officer (COO). Kolache Factory is still headquartered in Texas and remains under the leadership of the Banks family.
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