Franchise Description: Paris Baguette offers a French-inspired bakery experience, providing a wide range of high-quality breads, pastries, cakes, sandwiches, soups, salads, and beverages. The franchise is owned by Paris Baguette Family Inc., under the parent company Paris Croissant Co., Ltd., which is part of the SPC Group, a leading South Korean conglomerate.
Contents
Founded: 1986
Franchising Since: 1988
Franchise Fee: $50,000
Initial Investment: $718,065 – $1,801,600
Liquidity Requirement: $500,000
Headquarters: Moonachie, New Jersey
Origin: South Korea
Total Units: 4,000+
For more information, visit Paris Baguette Franchise.
Paris Baguette Franchise: Costs, Fees & Insights
Estimated Initial Investment
| Expense Category | Low | High |
|---|---|---|
| Initial Franchise Fee | $55,000 | $55,000 |
| Real Estate or Advance Rent and Security Deposit | $11,000 | $99,000 |
| Building Costs/Leasehold Improvements | $357,500 | $1,100,000 |
| Equipment and Fixtures | $184,751 | $346,500 |
| Signs | $8,250 | $27,500 |
| Smallwares | $27,500 | $33,000 |
| POS System, Software, Surveillance Equipment | $8,800 | $15,950 |
| Opening Inventory | $39,600 | $52,800 |
| Grand Opening Promotion | $13,750 | $13,750 |
| Licenses, Permits, Fees and Deposits | $4,961 | $20,581 |
| Miscellaneous Opening Expenses | $12,275 | $18,150 |
| Insurance | $3,746 | $5,379 |
| Attorneys’ Fees and Business Consultants | $3,339 | $8,250 |
| Travel and Living Expenses While Training | $22,000 | $71,500 |
| Cost of Goods During Training | $4,400 | $4,400 |
| Additional Funds for First 3 Months of Operation | $33,000 | $110,000 |
| ESTIMATED TOTAL | $789,972 | $1,981,260 |
Other Fees
| Type of Fee | Amount |
|---|---|
| Royalty Fee(s) | 5% of weekly gross sales |
| Marketing Fund Fee | 2% of weekly gross sales |
| Local Marketing Requirement | 1% of gross sales |
| Transfer Fee | $44,000 per transfer, plus additional costs |
| Renewal Fee | 50% of the then-current initial franchise fee |
| Management Fee | 10% of weekly gross sales, plus expenses |
| Late Fees | Lesser of 18% per year or the maximum lawful rate |
| Additional Training & Support Fee | $275 per day per trainer, plus travel and lodging expenses |
| Liquidated Damages | Monthly average royalty fees multiplied by 24 or months remaining |
Paris Baguette Franchise Insights
- Impressive Growth: Paris Baguette boasts a 40% year-over-year growth rate, significantly above the industry average of 1%.
- Low Failure Rate: The franchise has a 0% three-year failure rate, compared to the industry average of 11%, highlighting its stability.
- Diverse Product Portfolio: Offering over 500 items, from French pastries to Korean-inspired creations, driving repeat business.
- Global Reach: Serving over 10 million customers daily across 4,000+ locations worldwide.
Training Overview:
Pre-Opening Requirement:
- Operating principal, café manager, and 8-10 food production employees must complete initial training before opening to the public.
Training Locations:
- Classroom training at franchisor’s centers in Moonachie, NJ, Santa Clara, or Costa Mesa, CA, and/or online.
- On-the-job training at the café or designated franchisor training locations in the U.S.
Training Duration:
- Training Areas:
- Focus on operator/managers, bakers, and cake decorators.
Additional Training Opportunities:
- Franchisor may conduct seminars or conventions for franchisees, attendance may be mandatory or optional.
- Approximately 240 total hours of instruction.