Paris Baguette Franchise FDD, Profits & Costs (2025)
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.
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Initial Investment
How much does it cost to start a Paris Baguette franchise? It costs on average between $653,000 – $1,751,000 to start a Paris Baguette franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| 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 |
Average Revenue (AUV)
How much revenue can you make with a Paris Baguette franchise? A Paris Baguette franchised restaurant makes on average $2,532,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $838,000 yearly revenue for similar sandwich franchises. Below are 10 Paris Baguette competitors as a comparison:
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Paris Baguette Franchise Disclosure Document
Frequently Asked Questions
How many Paris Baguette locations are there?
As of 2024, Paris Baguette operates over 4,000 locations globally, with more than 170 of these in the United States. The majority of the U.S. locations are franchised, while a smaller portion are company-owned.
The brand has been expanding rapidly, opening 20 new stores in the first half of 2024 alone. By the end of the year, Paris Baguette expects to open an additional 70 locations, pushing its growth even further in the U.S. and other regions.
The company is well-positioned to continue its expansion across North America and beyond, aiming to significantly increase its footprint in the near future.
What is the total investment required to open a Paris Baguette franchise?
The total investment required to open a Paris Baguette franchise ranges from $653,000 to $1,751,000.
What are the ongoing fees for a Paris Baguette franchise?
Paris Baguette franchisees are required to pay a 5% royalty fee on gross sales. Additionally, there is a 2% advertising and marketing fee, which goes towards national marketing efforts. These fees support both the operational and promotional initiatives within the franchise network.
What are the financial requirements to become a Paris Baguette franchisee?
To become a Paris Baguette franchisee, you need to meet specific financial requirements. Franchisees must have a minimum net worth of $1.5 million and at least $500,000 in liquid assets.
These financial prerequisites are essential to ensure that franchisees can handle the initial investment, cover operational costs, and manage unforeseen expenses during the startup phase.
How much can a Paris Baguette franchise owner expect to earn?
The average gross sales for a Paris Baguette franchise are approximately $2.53 million per location. Assuming a 15% operating profit margin, $2.53 million yearly revenue can result in $379,500 EBITDA annually.
Who owns Paris Baguette?
Paris Baguette is owned by SPC Group, a South Korean conglomerate. SPC Group is the parent company of Paris Croissant Co., Ltd., which oversees the Paris Baguette brand.
The company was founded in South Korea and has grown to become an international bakery café chain, with thousands of locations worldwide. SPC Group operates other well-known food brands as well, primarily focusing on baked goods, cafes, and confectioneries.
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