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La Madeleine Franchise Costs $1.04M – $3.05M (2024 Fees & Profits)

La Madeleine, a beloved French bakery café, was founded in Dallas, Texas in 1983 by Patrick Esquerré. Inspired by the classic French country fare of his childhood, Esquerré aimed to bring the warmth and flavors of French cuisine to America. Over the years, La Madeleine has grown into a cherished community staple, known for its handcrafted, crave-worthy dishes that include a variety of entrées, sandwiches, salads, and soups, as well as freshly baked breads and pastries.

Headquartered in Dallas, La Madeleine began offering franchise opportunities in 2013. Today, it boasts over 90 locations across the United States and internationally.

The franchise model offers a range of prototypes to accommodate various market needs, including traditional café formats, petite versions, and self-contained kiosks. Each café is designed to provide a welcoming atmosphere reminiscent of a casual French home, complete with a signature fireplace.

Initial investment

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The initial franchise fee is $40,000, payable in full upon signing the Franchise Agreement. For cafes located at Non-Traditional Facilities, the fee is reduced to $20,000.

Royalty Fee

The royalty fee is 5% of the Gross Sales of the café, payable weekly.

Marketing/Advertising Fee

The initial contribution to the Brand Marketing Fund is 2% of Gross Sales, which can be increased by up to 0.25% per year, not exceeding 3%.

Brand Fund Fee

Included within the Marketing/Advertising Fee, contributing up to 3% of Gross Sales.

Technology Fee

The initial technology administrative fee is approximately $2,860 per café, payable upon signing the ASA.

Transfer Fees

The transfer fee is 50% of the then-current initial franchise fee for each café being transferred, payable 10 days before the transfer closing date.

Renewal Fees

The renewal fee is 50% of the then-current initial franchise fee for cafes, payable upon signing the then-current form of Franchise Agreement.

How to open

1. Evaluate Your Qualifications

  • Ensure you meet the financial requirements.
    • Liquid assets needed: Between $500,000 and $1.5 million depending on the market.
  • Assess your experience.
    • Preferred background: Experience in multi-unit restaurant management is beneficial.

2. Submit an Inquiry

  • Visit the La Madeleine franchise website.
    • Contact form: Fill out the franchise inquiry form with your details and interest.
  • Wait for initial contact from La Madeleine’s franchise development team.

3. Initial Review and Application

  • Participate in a preliminary phone call or meeting.
    • Discussion points: Your background, financial status, and market area of interest.
  • Complete a detailed franchise application.
    • Documentation: Provide financial statements and other required documents.

4. Attend Discovery Day

  • Visit the La Madeleine headquarters.
    • Activities: Meet the corporate team, tour existing locations, and understand the business model.
  • Evaluate the franchise opportunity.
    • Key topics: Training, support, real estate, construction, and operations.

5. Review and Sign Franchise Agreement

  • Go through the Franchise Disclosure Document (FDD).
    • Legal review: Consult with a franchise attorney to understand all terms and conditions.
  • Sign the franchise agreement.
    • Initial fee: Pay the initial franchise fee as outlined in the agreement.

6. Secure Financing

  • Explore financing options.
    • Sources: Personal savings, bank loans, or Small Business Administration (SBA) loans.
  • Finalize funding for the franchise.
    • Documentation: Prepare and submit all necessary financial documents to secure funds.

7. Select and Develop Location

  • Work with La Madeleine’s real estate team.
    • Site selection: Choose an optimal location based on market research and demographic analysis.
  • Begin construction or renovation.
    • Project management: Coordinate with La Madeleine’s construction team to ensure brand standards are met.

8. Complete Training Program

  • Attend La Madeleine’s comprehensive training.
    • Duration: Several weeks covering all aspects of operations, management, and customer service.
  • Train your staff.
    • On-site training: Implement training programs for employees to ensure consistent quality and service.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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