Paris Baguette Franchise Costs, Fees & Owner Salary (2023)

Initial Franchise Fee ($50,000)

‍The initial franchise fee for a Paris Baguette franchise is $50,000 for a single Paris Baguette Cafe. If the Cafe subject to this Agreement is developed pursuant to an Area Development Agreement, or if this is the second or any subsequent Franchise Agreement between Paris Baguette and the franchisee, the Initial Franchise Fee shall be discounted to $40,000.

Royalty Fee (5% of Gross Sales)

‍Franchisees are required to pay a continuing royalty fee equal to five percent (5%) of the weekly Gross Sales of the Franchised Restaurant.

Advertising Fee (2% to 3% of Gross Sales)

‍Franchisees are obligated to contribute towards advertising and marketing efforts. This includes a contribution of 2% of weekly Gross Sales to the Marketing Fund and an additional 1% of Gross Sales for local advertising.

The total estimated initial investment for a single Paris Baguette Cafe ranges from $652,565 to $1,750,900. Below is a detailed breakdown of the costs involved, providing potential investors with a clearer picture of the financial commitment required.

Here's a detailed look at what they offer to their franchisees:

Training Program: Paris Baguette offers a comprehensive training program that combines various learning methods, ensuring that franchisees are well-prepared with the necessary knowledge and skills to operate their bakery.

Who Needs to Attend: The franchisee's Operating Principal, Cafe Manager, and between eight (8) to ten (10) food production personnel are required to attend and successfully complete the initial training program.

Training Content: This includes sales techniques, product orientation, accounting procedures, food preparation, and operations management.

Location and Duration: The training is provided at locations designated by Paris Baguette. The Operating Principal and Cafe Manager will attend an eight (8) week operations training program that includes a mix of lectures, videos, assessments, and on-the-job training. Similarly, the food production personnel will attend an eight (8) week production-based training program.

Training Expenses: Paris Baguette provides the initial training program for the franchisee's initial Operating principal, Cafe Manager, and eight (8) to ten (10) food production personnel at no extra charge. However, franchisees will bear all other expenses incurred in attending the training.

Franchisees do not receive an exclusive territory. They are granted a geographical area known as the "Protected Territory". Within this Protected Territory, Paris Baguette commits not to establish or grant a new franchise for the operation of a Paris Baguette Restaurant.

However, deliveries of goods, even if done by a third-party delivery service, to a customer located within the franchisee's Protected Territory from a Paris Baguette Restaurant situated outside of the Protected Territory are not considered a violation of the franchisee's territorial rights.

Franchisees may face competition from other franchisees, from outlets that Paris Baguette owns, or from other channels of distribution or competitive brands controlled by Paris Baguette.

Paris Baguette requires franchisees to designate an individual as the "Operating Principal." If an Area Development Agreement is signed, this Operating Principal must maintain a minimum direct or indirect ownership interest in the Area Developer and in each entity holding a franchise under it.

Franchisees can form subsidiary entities for each Cafe they develop, but these entities must have the same ownership and control as the entity that signs the Area Development Agreement.