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- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$409K - $490K
- Units as of 2022
32 5% over 3 years
Here’s what you need to know if you’re interested in opening a Breadsmith franchise.
Founded in 1993 and headquartered in Whitefish Bay, Wisconsin, Breadsmith focuses on creating hand-crafted European-style bread baked daily using high-quality ingredients without preservatives or additives. The bakery has production crew members, mixers, and bakers who make fresh bread each day. The bakery attempts to imitate European styles in all its franchises with Breadsmith flair and originality.
Breadsmith began franchising in the same year as its founding and has grown to more than 30 franchise units across the United States. Breadsmith has also emerged as a leading artisan bakery in the United States with a myriad of rewards on local and national levels to its credit.
Why You May Want to Start a Breadsmith Franchise
Starting your Breadsmith franchise may not be limited to only offering pastries and bread to consumers. You'll be able to enter into wholesale distribution agreements with specialty stores and local supermarkets. It is also probable that you will supply cafes and restaurants with freshly baked goods. Depending on the baking capacity and store location, you may be asked to service national or regional accounts. This way, you may be more likely to increase your business's growth strategy.
Due to its focus on time-tested recipes, natural ingredients, and expert baking, Breadmith franchises could receive accolades from review sites and food magazines. As a result of its organic ingredients and farm-to-table products, Breadsmith franchises may be popular in their areas.
The franchisor provides training to franchisees, assists in choosing a suitable location, and provides preventive maintenance inspections. Breadsmith also always tries to arrange for supplier prices on behalf of franchisees.
What Might Make a Breadsmith Franchise a Good Choice?
To be part of the Breadsmith team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include royalty and renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Breadsmith has partnered with third-party financial lenders that may help cover the costs of the franchise fee, startup, equipment, inventory, accounts receivable, and payroll.
The ideal candidate for a Breadsmith franchisee is passionate about baking fresh European-style bread from scratch while actively serving their community. Franchisees interested in human interaction and charitable giving may find operating a Breadsmith franchise to be rewarding.
How To Open a Breadsmith Franchise
To begin the process of opening a Breadsmith franchise, you should first submit an inquiry form. One of the company's team members may contact you to discuss the business model further and determine whether you are a good fit.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. Speak to existing franchisees and ask the Breadsmith team questions. Suppose your net worth and available liquid capital match the brand's requirements. In that case, you may qualify to open a Breadsmith franchise, and you can get started with an initial investment and relevant training.
Get what you 'knead' and get started with your Breadsmith franchise.
- Franchising Since
- 1993 (30 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees in the following US states: Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West Virginia, Wyoming
- # of Units
- 32 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Breadsmith franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $409,300 - $489,800
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 10% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
- to 2%
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 15 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 115.5 hours
- Classroom Training
- 26 hours
- Ongoing Support
Purchasing Co-opsMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite Selection
- Marketing Support
Ad TemplatesSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Breadsmith? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Breadsmith landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Breadsmith ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Breadsmith.
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