Paris Baguette Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$50,000
Investment required
$653,000 - $1,751,000
Royalty fee
5.00%

Paris Baguette: Redefining Freshness in Global Bakery Cafes

Paris Baguette is a globally recognized chain of bakery cafes, known for its extensive variety of fresh baked goods, pastries, cakes, sandwiches, coffee, and a range of hot and cold beverages.

Founded in 1986, Paris Baguette is a subsidiary of Shani Co., Ltd., and part of the SPC Group, a prominent South Korean conglomerate. The bakery chain originated in South Korea and began franchising in 1988. Over the years, it has expanded its presence internationally, reaching markets such as the United States, Vietnam, and Singapore. Its US headquarters is located in Moonachie, New Jersey.

Paris Baguette is committed to providing high-quality, freshly made foods and continually expanding its reach. In line with this mission, the company has plans to open 64 new units in 2023 and aims to establish 1,000 units in the United States by 2030. The brand is also known for its innovative menu, incorporating both traditional and contemporary flavors to cater to a diverse customer base. Additionally, Paris Baguette focuses on creating a welcoming and comfortable atmosphere in its cafes, enhancing the overall customer experience.

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.

Type of Expenditure Low High
Initial Franchise Fee $50,000 $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 $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 $4,000
Additional Funds for First 3 Months of Operation $30,000 $100,000
TOTAL $652,565 $1,750,900

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Number of units

2023
Franchised units

38

63

82

Company-owned units

45

27

20

Total units

83

90

102

Franchise Disclosure Document

Training 

Paris Baguette ensures its franchisees are thoroughly prepared with a robust training program that utilizes diverse learning methods.

Mandatory Attendees: The training program is essential for the franchisee's Operating Principal, Cafe Manager, and 8-10 food production staff members, all of whom must complete the training successfully.

Training Curriculum: The program covers various aspects, including sales techniques, product knowledge, accounting procedures, food preparation, and operations management.

Training Location and Duration: The training takes place at designated Paris Baguette locations. The Operating Principal and Cafe Manager undergo an intensive eight-week operations training, which includes lectures, videos, assessments, and practical on-the-job training. Similarly, the food production staff also attend an eight-week production-focused training program.

Training Costs: Paris Baguette covers the cost of the initial training program for the franchisee's Operating Principal, Cafe Manager, and 8-10 food production personnel. However, all other expenses associated with attending the training are the responsibility of the franchisee.

Territory Protection

Territory Protection: Franchisees are allocated a geographical area termed the "Protected Territory." Within this zone, Paris Baguette assures not to open or authorize a new franchise for another Paris Baguette Restaurant.

Delivery Clause: Deliveries made to customers within the Protected Territory, even if facilitated by third-party delivery services from a Paris Baguette Restaurant outside the Protected Territory, do not infringe upon the franchisee's territorial rights.

Competition: Franchisees should be prepared for potential competition from other franchisees, company-owned outlets, and other distribution channels or competitive brands managed by Paris Baguette.

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