Panera Bread Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$633,000 - $4,906,000
Royalty fee
5.00%

Panera Bread: Crafting Fresh Artisanal Breads and Café Delights

Founded in 1987 in Kirkwood, Missouri, Panera Bread has evolved into a leading fast-casual restaurant chain renowned for its freshly baked breads, sandwiches, soups, salads, and specialty beverages.

Headquartered in Sunset Hills, Missouri, the company began franchising in 1990, expanding its presence across the United States and Canada.

Panera Bread distinguishes itself by emphasizing high-quality, clean ingredients and a warm, welcoming dining atmosphere. The brand's commitment to transparency is evident in its clear menu labeling and dedication to removing artificial additives from its offerings.

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.

Category Actual or Estimated Amount
Franchise Fee $35,000
Real Property (See Note 2)
Leasehold Improvements $164,000 to $2,873,000
Equipment $270,000 to $529,000
Optional Technology Systems $0 to $120,000
Fixtures $6,700 to $216,000
Furniture $4,700 to $127,000
Consultant Fees $47,000 to $328,000
Supplies & Inventory $19,000 to $25,000
Smallwares $9,600 to $48,000
Signage $9,100 to $176,000
Additional Funds (3 months) $68,000 to $429,000
TOTAL $633,000 to $4,906,000 (excluding real estate and related costs, and landlord allowances)

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Number of units

2024
Franchised units

1,117

1,089

1,112

Company-owned units

988

1,020

1,052

Total units

2,105

2,109

2,164

Franchise Disclosure Document

Training

The training provided by Panera Bread's franchisor includes a structured and detailed approach to ensure franchisee and personnel readiness. Below are the key aspects of the training program:

  1. Initial Training:
    • The franchisor provides initial training to the franchisee, their Operating Partner, and personnel. This includes classroom and on-the-job training tailored to various roles, such as bakers and managers.
  2. Specialized Programs:
    • Programs include baker training facilitated by certified trainers and market-specific specialists. These programs emphasize hands-on learning and role-specific skills development.
  3. Ongoing Training and Guidance:
    • Franchisees and personnel are required to attend periodic and additional training sessions as deemed necessary by the franchisor. These cover updates to the operating system, quality assurance, and health and safety standards.
  4. Owner and Marketing Orientations:
    • An “Owner’s Orientation” is designed to familiarize the Operating Partner with the Panera system. Additionally, a “Marketing Orientation” is mandatory for designated personnel to align with the brand’s marketing strategies.
  5. Support Materials:
    • Franchisees receive access to proprietary materials and online resources, including training manuals, system documentation, and onboarding tools.
  6. Certified Manager Programs:
    • Programs such as the Certified Manager Program and online curriculum for team member training are provided. These include a mix of classroom training and practical applications to ensure role-specific readiness.
  7. Self-Directed Training Options:
    • Franchisees may request guidance to develop their own certified training programs for personnel to address specific operational needs.

Territory Protection

Panera Bread provides limited territory protection to its franchisees. Franchisees are granted a "Protected Area," within which no other franchisee or franchisor-owned outlet will be established without their consent.

However, this protection does not guarantee exclusivity in all operational channels, as the franchisor retains rights to distribute products or services through other means, such as catering or delivery, within designated boundaries.

Despite this, competition from the franchisor or other franchisees may still occur within the broader region. The Protected Area's boundaries can only be adjusted with mutual agreement, ensuring some level of operational security for the franchisee.

Nonetheless, the franchisee's rights to the Protected Area are not contingent upon achieving specific sales or performance targets.

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