
Kolache Factory
Kolaches, pastries, coffee- 2023 Franchise 500 Rank
-
#459 Ranked #372 last year
- Initial investment
-
$432K - $709K
- Units as of 2022
-
59 1.7% over 3 years
Kolache Factory was founded in Houston, Texas, in 1981 by co-founders Jerri and John Banks after they recognized the need for fresh, high-quality breakfast. The company is committed to food innovation, craftsmanship, and authenticity by serving fresh kolaches and other specialty products. The brand sources gourmet coffees and diverse traditional pastries such as strudel niks, croissants, and cinnamon rolls.
At first, its co-founders struggled to convince customers to try their fresh, high-quality kolaches. Some people in Houston had never tasted this Eastern European treat before. After implementing various strategies for product awareness, however, it wasn't long before kolaches were in high demand for breakfasts, afternoon snacks, and business meetings. Today, the company has more than 55 units across the United States. Of those 55, over 25 are franchised locations.
Why You May Want to Start a Kolache Factory Franchise
As a Kolache Factory franchisee, you'll enjoy the independence of being your own boss, yet benefit from the company's support. The company's multi-week intensive training program may help you stay well-informed on a wide array of subjects, including food preparation, store operations, customer service, quality control, inventory control, marketing, and cash register systems.
Kolache Factory is a unique company, just like the products it serves, and is passionate about providing its customers with innovative products. The persistent quest for unique experiences using different choices, flavors, and ingredients may be what the factory is all about!
What Might Make a Kolache Factory Franchise a Good Choice?
To some, breakfast is king, commanding respect as one of the strongest-performing meals in the food industry. Pair this with a restaurant chain, and you may be in business! Stocked with more than 25 different kolache varieties, the company strives to produce high-end products that are tasty and affordable for every consumer.
Some kolaches cost less than a few dollars each, with their more "expensive" kolache equaling out to less than $5.00. This price range may make it easy for someone to pick up a dozen or more for a meeting, breakfast at home, or just to enjoy themselves.
To be part of the Kolache Factory 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 the existence of ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How to Open a Kolache Factory Franchise
The ideal Kolache Factory candidate is passionate about owning a community-oriented business. Having restaurant or bakery experience will work in your favor, but it isn't always necessary. At the very least, however, you'll need to be a strong manager with significant business experience and strong social skills. With Kolache Factory, you have to be involved in daily operations; absentee ownership is not allowed.
Location may or may not be an issue for you, depending on where you're looking to franchise. The Kolache Factory is currently only targeting about a dozen states for franchise opportunities. You may need an area developer agreement for locations outside of this range.
The Franchise Disclosure Document can provide more in-depth information about its opportunities and ownership requirements. This information can help you weigh the pros and cons of moving forward with your own Kolache Factory franchise.
Company Overview
About Kolache Factory
- Industry
- Food
- Founded
- 1982
- Parent Company
- Kolache Factory
- Leadership
- Dawn Nielsen, COO
- Corporate Address
-
23240 Westheimer Pkwy., #A
Katy, TX 77494
Business Overview
- Franchising Since
- 2000 (2023-2000 years)
- # of employees at HQ
- 16
- 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, Maine, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, West Virginia, Wyoming
- # of Units
- 59 (as of 2022)
Information for Franchisees
Here's what you need to know if you're interested in opening a Kolache Factory 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
Information Circle - $44,900
-
Initial Investment
Information Circle - $431,900 - $709,400
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Net Worth Requirement
Information Circle - $500,000
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Cash Requirement
Information Circle - $150,000
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Royalty Fee
Information Circle - 6%
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Ad Royalty Fee
Information Circle - 3%
-
Term of Agreement
Information Circle - 10 years
- Is franchise term renewable?
- Yes
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Kolache Factory has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
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
- 220 hours
- Classroom Training
- 7 hours
- Ongoing Support
-
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
-
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Operations
Additional details about running this franchise.
- Is absentee ownership allowed?
- No
-
Can this franchise be run from home/mobile unit?
Information Circle - No
-
Can this franchise be run part time?
Information Circle - No
- # of employees required to run
- 6-8
-
Are exclusive territories available?
Information Circle - Yes
Interested in ownership opportunities like Kolache Factory? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Kolache Factory landed on this year's Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where Kolache Factory ranked on other franchise lists? Find out below.
Ranked #1 in Miscellaneous Baked Goods in 2022
These are the companies that not only ranked in this year’s highly competitive Franchise 500, but ranked #1 in their respective industry categories.
Ranked #459 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
Ranked #1 in Miscellaneous Baked Goods in 2022
Our annual list of the top restaurant and other food franchises, divided up by category, is the perfect place to start if you’re craving a food-based business opportunity.
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