Start a Magnolia Bakery Franchise in 2026

Company Overview

About Magnolia Bakery

Industry	Food
Related Categories	Retail Baked Goods, Bakery Cafes
Founded	1996
Parent Company	Magnolia Bakery International LLC
Leadership	Bobbie Lloyd, CEO
Corporate Address	244 W. 54th St., #501 New York, NY 10019
Social	Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest, TikTok

Business Overview

Franchising Since	2011 (15 years)
# of employees at HQ	44
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises worldwide.
# of Units	48 (as of 2025)

Information for Franchisees

Here's what you need to know if you're interested in opening a Magnolia Bakery 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.	$49,000
Initial Investment 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.	$594,000 - $1,187,300
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.	$3,000,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$900,000
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.	6%
Ad Royalty Fee 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.	2%
Term of Agreement 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.	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	Magnolia Bakery 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	288 hours
Classroom Training	38 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
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.	No
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.	No
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.	Yes

Franchise 500 Ranking History

Compare where Magnolia Bakery landed on this year's Franchise 500 Ranking versus previous years.

Additional Rankings

Curious to know where Magnolia Bakery ranked on other franchise lists? Find out below.

Ranked #463 in 2026

Franchise 500

More from Magnolia Bakery

The story of Magnolia Bakery begins in 1996, on a quiet cobblestone corner in New York City’s West Village — with a simple goal: create a neighborhood bakery that made people feel something.

What started as a small shop quickly became a global phenomenon. Our Red Velvet Cupcakes became iconic. Our fresh, house-made Banana Pudding sparked lines around the block. Locals came daily. Visitors made Magnolia Bakery a must-stop destination. A bakery built on warmth, craft, and joy became part of the cultural fabric of New York.

As demand grew, we knew our mission was bigger than one neighborhood. So we opened the cupboards and began sharing our recipes and our spirit with new communities near and far — helping people celebrate birthdays, milestones, holidays, and everyday moments that deserve something sweet.

Today, Magnolia Bakery continues to expand across the U.S. and around the world, but the heart of our brand remains unchanged:

We open early and close late.
We believe a dollop of buttercream makes everything better.
And we exist for one simple reason:

To make today sweeter than yesterday.

For entrepreneurs who believe in building something extraordinary - one cupcake, one customer, one community at a time - Magnolia Bakery is more than a business opportunity. It’s a legacy you get to grow.

Why Open a Magnolia Bakery Franchise?

Magnolia Bakery is more than a neighborhood bakery. It’s an established brand with a global following and a legacy built on care, quality and a little confectionary magic.

For the first time, we are opening our doors to franchise ownership in the U.S., 30 years after we opened our first store on Bleecker Street.

In a fast-growing dessert industry, we lead with a loyal following, best-in-class product, and a trusted name known globally. And yet, something about our brand still feels local, familiar, and personal. As we expand, we’re looking for franchise owners who share that mission and see the extraordinary everyday.

Be among the first to bring Magnolia Bakery to your neighborhood!

Beloved brand known for Banana Pudding and classic American desserts
$4,459,911 Average Gross Revenues*
Flexible and scalable store formats from 800-2,000 sq ft
Pop culture icon featured on Sex and the City, SNL, and more.
Opportunities in every state!

*Average Gross Revenues of 10 company-owned Magnolia Bakeries that were in operation during the entire 2024 calendar year. See Item 19 of our April 29, 2025 Franchise Disclosure Document for a definition of Gross Revenues and for further information.

Disclaimer

The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.

Updated: December 12th, 2022

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