Paris Baguette Franchise Costs $653K – $1.8M (+ 2024 Profits)

Paris Baguette, established in 1986 and headquartered in Moonachie, New Jersey, is a franchise well-known for its French-inspired baked goods. The brand, which started franchising two years after its inception in 1988, is a subsidiary of the South Korean conglomerate SPC Group, under its parent company Paris Croissant Co., Ltd.

Paris Baguette offers a diverse array of products including high-quality breads, pastries, cakes, handcrafted sandwiches, soups, salads, and both hot and cold beverages.

Known for its dedication to quality and customer experience, Paris Baguette distinguishes itself from competitors by maintaining a focus on being a premier neighborhood bakery café rather than transitioning into a full-service restaurant. This strategy has allowed it to thrive within a niche market, largely free from direct competition in its specific segment

Type of Expenditure	Amount
Initial Franchise Fee(!)	$50,000
Real Estate or Advance Rent and Security Deposit and other Prepaid Expenses and Costs	$10,000 – $90,000
Building Costs/Leasehold Improvements	$250,000 – $1,000,000
Equipment and Fixtures	$167,956 – $242,800
Signs	$19,500 – $49,000
Smallwares	$25,000 – $30,000
Point of Sale System, Hardware, Software and Surveillance Equipment	$8,000 – $14,500
Opening Inventory	$36,000 – $48,000
Grand Opening Promotion	$10,000
Licenses, Permits, Fees and Deposits	$4,510 – $18,710
Miscellaneous Expenses	$11,159 – $16,500
Insurance	$3,405 – $4,890
Attorneys’ Fees and Business Consultants	$3,035 – $7,500
Travel and Living Expenses While Training	$20,000 – $65,000
Cost of Goods During Training	$4,000
Additional Funds for First 3 Months of Operation	$30,000 – $100,000
Total	$653,000 – $1,751,000

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.

Initial Franchise Fee

The initial franchise fee is $50,000, payable upon signing the franchise agreement.

Royalty Fee

The royalty fee is 5% of weekly Gross Sales.

Marketing/Advertising Fee

• Marketing Fund Fee: Currently 2% of weekly Gross Sales.
• Local Marketing Requirement: Currently 1% of Gross Sales.

Technology Fee

The technology fee is up to $200 per month, payable each month with the first Royalty Fee of each month.

Transfer Fees

The transfer fee is 25% of the then-current standard Initial Franchise Fee, plus costs and expenses associated with the relocation.

Renewal Fees

The renewal fee is 50% of the then-current standard Initial Franchise Fee at the time of signing the renewal franchise agreement.

Management Fees

The management fee is 10% of weekly Gross Sales, plus expenses, payable weekly out of the Cafe proceeds at the same time and in the same manner as the Royalty Fee.

How to OPEN A paris baguette franchise

Opening a Paris Baguette franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Paris Baguette franchise.

1. Research the Franchise

• Begin by researching Paris Baguette to understand their business model, history, and franchise system.
• Visit the Paris Baguette franchise website to obtain preliminary information about the franchise opportunity.

2. Submit an Inquiry

• Complete the inquiry form on the Paris Baguette franchise website to express your interest in opening a franchise.
• Provide necessary details such as your contact information, location interest, and any questions you might have about the franchise.

3. Review Franchise Disclosure Document (FDD)

• Once your inquiry is processed, you will receive the Franchise Disclosure Document (FDD) which details the financial obligations, legal responsibilities, and operational aspects of running a Paris Baguette franchise.
• Review the FDD thoroughly, ideally with the assistance of a franchise attorney to understand all the terms clearly.

4. Financial Qualification

• Assess your financial capacity to meet the investment requirements which include the franchise fee, real estate costs, equipment, and other startup expenses.
• Ensure you meet the minimum financial requirements stated by Paris Baguette, such as liquidity and net worth.

5. Attend Discovery Day

• Participate in a Discovery Day at Paris Baguette’s corporate location or a designated training center. This event provides an opportunity to meet the corporate team, understand the brand culture, and ask any further questions.

6. Site Selection and Approval

• Work with the Paris Baguette real estate team to identify a suitable location for your bakery café. The team will support you in evaluating potential sites based on traffic patterns, local demographics, and brand suitability.
• Obtain approval for your selected site from Paris Baguette.

7. Secure Financing

• Arrange for financing to cover the initial investment costs. This may involve personal savings, bank loans, or other financing options. Paris Baguette does not provide direct financing but may offer guidance on securing funds.

8. Sign Franchise Agreement

• Once your location is approved and finances are in place, you will sign the franchise agreement, which formalizes your commitment to owning and operating a Paris Baguette franchise.
• Pay the franchise fee and any other initial costs as required.

9. Complete Training Program

• Undergo the comprehensive training program provided by Paris Baguette, which covers both classroom and on-the-job training aspects. Training typically includes product preparation, customer service, store management, and compliance with brand standards.

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.

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