Kolache Factory: Redefining Breakfast with Czech-Inspired Pastries

Kolache Factory is a bakery-café franchise that originated in Houston, Texas, in 1982, founded by John and Jerri Banks. The brand is celebrated for popularizing kolaches in the United States—flaky, handheld pastries traditionally filled with savory meats, cheeses, or sweet fruits. These versatile baked goods offer a fast, satisfying breakfast option for busy lifestyles.

Franchising began in 2000, and Kolache Factory has grown to include more than 60 stores across the country. The company maintains a blend of corporate-owned and franchised locations, with a strong presence in states such as Texas, California, Indiana, and South Carolina.

Recognized for its culinary creativity, Kolache Factory was ranked the #1 Baked Goods franchise by Entrepreneur magazine in both 2022 and 2023. Its focus on innovation and customer satisfaction has earned it a spot among the top bakery franchises nationwide.

Now based in Katy, Texas, the franchise continues its growth by prioritizing high-quality ingredients and leveraging modern technology to enhance its service and convenience.

Training

Kolache Factory provides a structured and comprehensive training program to franchisees and their management staff to ensure proper operations of each Store. The franchisor outlines multiple types of training, each with specific requirements and delivery formats:

1. Initial Certification Training: If the franchise agreement is for the first store, Kolache Factory requires the franchisee, one managerial-level individual, and one shift leader to complete at least 220 hours of training. If the store has extended hours, up to four managers must be trained. The training is mandatory for store opening.
2. Ongoing Store Training: For the second store, the general manager may be one of the previously certified trainees. For the third or later stores, an additional managerial-level employee must complete the 220-hour training to become certified.
3. Manager Replacement Training: If a certified manager leaves the store, a replacement manager must complete the 220-hour certification program within 30 days.
4. Training Locations: The training typically takes place at Kolache Factory’s Training Facility in Houston, Texas, though they may offer a location closer to the franchisee or partial online training depending on circumstances like COVID-19.

Territory Protection

Kolache Factory provides a limited form of territory protection to its franchisees. While the franchisor does not offer exclusive territories, it assigns each Store a specific “Trade Area” defined in Exhibit B of the Franchise Agreement.

Within this Trade Area, Kolache Factory agrees not to open or authorize another Store, granting the franchisee some protection from direct competition by other traditional outlets operating under the same brand.

However, the territory protection has important limitations. Franchisees receive no protection from Special Outlets (like kiosks or mobile units), nor from company or affiliate sales through supermarkets, e-commerce, catering, or promotional activities in or near the Trade Area.