La Madeleine Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$370,000 - $3,054,000
Royalty fee
5.00%

La Madeleine: A Beloved French Bakery and Café

La Madeleine, a cherished French bakery and café chain, was founded in February 1983 by Patrick Esquerré in Dallas, Texas. Inspired by his Loire Valley heritage and with support from retail legend Stanley Marcus of Neiman Marcus, Esquerré opened the first La Madeleine near Southern Methodist University. Initially focusing on French bakery items, the café gradually expanded its menu to include a wide variety of French cuisine, becoming a popular neighborhood gathering spot.

La Madeleine was created to offer an authentic French experience, reminiscent of the cozy cafés found throughout France. Known for its distinctive ambiance, the restaurants feature impressionist paintings and a warm fireplace, serving a variety of French dishes in a casual, cafeteria-style setting. Over the years, the menu has evolved to include a range of offerings from salads and sandwiches to hearty entrees and soups, all while maintaining a commitment to authentic French flavors.

The chain experienced rapid growth and expansion, reaching various urban markets across the United States. By the mid-1990s, La Madeleine had extended beyond Texas to cities like New Orleans, Washington, D.C., and Atlanta. The expansion included not only new locations but also an ever-evolving menu, with new dishes regularly introduced to keep offerings fresh and engaging for customers.

In 2001, La Madeleine was acquired by Groupe Le Duff, a French restaurant chain company, marking a new chapter in its history. Despite changes in ownership and management, La Madeleine has stayed true to its founding principles, providing an authentic French dining experience that emphasizes quality, community, and a warm, welcoming atmosphere.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

La Madeleine offers 2 types of franchises:

Franchise Option Initial Investment
LA MADELEINE® franchise Bakery Café $1,042,858 to $3,053,595
Express Café $369,677 to $754,822

We are summarizing below the main costs associated with opening a La Madeleine Bakery Café franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

La Madeleine Bakery Café

Type of Expenditure Amount
Initial Franchise Fee $40,000
Real Property Variable
Design, Permitting Fees & Liquor License $60,000 to $189,945
Building and Leasehold Improvements $448,631 to $1,489,805
Security Camera System $0 to $10,000
Signage and Awnings $25,000 to $63,207
Furniture, Fixtures & Equipment $355,883 to $438,418
Technology Suite $37,784 to $126,860
Initial Technology Administrative Fee $2,860
Site Work $0 to $300,000
Start-up Inventory & Supplies $31,700 to $51,500
Grand Opening Advertising $10,000 to $30,000
Insurance $3,000 to $25,000
Training & Managers' Salary $5,000 to $51,000
Utility Deposits/ Licenses $3,000 to $5,000
Legal and Accounting $5,000 to $30,000
Additional Funds – 3 months $15,000 to $200,000
Total (excluding real estate) $1,042,858 to $3,053,595

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Number of units

2023
Franchised units

57

59

60

Company-owned units

27

37

27

Total units

84

96

87

Franchise Disclosure Document

Training 

Joining La Madeleine means becoming part of a brand that brings the charm of French cuisine to the table. Their dedication to franchisee success is reflected in their comprehensive training and support structure. Here’s an overview of what they offer:

Training Program: La Madeleine offers an extensive training program to ensure franchisees are well-prepared to operate their café effectively.

Who Needs to Attend: The franchisee’s designated General Manager, along with up to three other management personnel, must complete La Madeleine’s management training program.

Training Content: This program covers critical topics for running the café, including sales techniques, product orientation, accounting procedures, food preparation, and operations management.

Location and Duration: Training takes place at designated La Madeleine locations over approximately 3–4 days. The program includes discussions on the system, techniques, procedures, methods of operation, ordering, accounting, support procedures, and instructions on maintaining quality standards.

Training Expenses: While La Madeleine provides the initial training for the franchisee’s designated General Manager and three other management personnel, franchisees are responsible for their own travel, accommodation, and other expenses incurred during the training.

Territory Protection

Franchisees are granted a geographical area referred to as the "Protected Territory," but they do not receive exclusive territorial rights. Within this Protected Territory, La Madeleine commits not to establish or grant a new franchise for the operation of another La Madeleine Restaurant.

However, the delivery of goods to customers within the franchisee's Protected Territory by a La Madeleine Restaurant located outside of this territory, even if done by a third-party delivery service, does not violate the franchisee's territorial rights.

Franchisees may still encounter competition from other franchisees, La Madeleine-owned outlets, or other distribution channels or competitive brands managed by La Madeleine.

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