Paris Baguette Franchise: Worth the $1M Cost? (2023)
With 3,740 locations as of 2023, Paris Baguette is undeniably one of the largest bakery and baked goods franchise globally. Yet, despite a recent strong push in the franchised US market recently (they aim to reach 1,000 shops by 2030), Paris Baguette only has 82 shops in the US today.
So, as a franchisee, should you buy a Paris Baguette franchise and set up shop in the US today?
In addition to benefitting from a strong brand globally, we found Paris Baguette franchises are also very profitable businesses. Indeed, whilst you would spend on average $1 million to open a new franchise, you would gross around $1.6 in sales per year, not bad.
In this article we are looking at Paris Baguette and its Franchise Disclosure Document to find out how much it (really) costs and how much money you can realistically make with this business. Let’s dive in!
Key stats
| Franchise fee | $50,000 |
| Royalty fee | 5.0% |
| Marketing fee | 2.0% |
| Investment (mid-point) | $1,008,000 |
| Average sales | $1,617,000 |
| Sales to investment ratio | 1.6x |
| Payback period | 6 years |
| Minimum net worth | $1,500,000 |
| Minimum liquid capital | $500,000 |
Paris Baguette Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
About Paris Baguette
Paris Baguette is a multinational chain of bakery cafes that offers a variety of fresh baked goods, pastries, cakes, sandwiches, coffee, food, hot and cold beverages and other products.
The chain was established in 1986 as a subsidiary of Shani Co., Ltd., with its country of origin being South Korea and its parent company being SPC Group, a South Korean conglomerate.
Paris Baguette began franchising in 1988, growing into the United States, Vietnam and Singapore, thus becoming a global company.
As of 2022, Paris Baguette has 82 franchises in the US and 3,742 locations globally. With a continued commitment to expansion and high-quality, freshly made foods, Paris Baguette is eyeing more locations in the US, as it announced plans to add 64 units in 2023 and aims to reach the 1,000-unit mark in the country by 2030.
How much does a Paris Baguette franchise cost?
On average, you may need to invest around $1,008,000 to open a Paris Baguette franchise.
Startup costs
Here’s the full breakdown of costs:
| Type of Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Formation Costs | $238,865 | $1,367,664 |
| Initial Marketing | $10,000 | $10,000 |
| Operating Costs | $79,405 | $210,890 |
| Total | $378,000 | $1,639,000 |
What is the franchise fee?
The initial franchise fee for a Paris Baguette franchise is $50,000
In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 5.0% of revenues, as well as a variable marketing fee of 2.0% of revenues.
What is the turnover of a Paris Baguette franchise?
On average, a Paris Baguette franchise generates $1,617,000 in revenue per year.
Paris Baguette Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
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