In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Paris Baguette franchise, based on Item 7 of the company’s 2024 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Paris Baguette franchise, based on Items 5 and 6 of the company’s 2024 FDD
Section III – Number of franchised and company-owned Paris Baguette outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD
Section IV – News updates on the Paris Baguette franchise opportunity
Section V – Presentation and analysis of Paris Baguette’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:
- 2023 average, median, highest, and lowest sales for the 17 affiliate-owned and 85 franchised (excluding kiosks) Paris Baguette Cafes that operated for the entire 2023 calendar year, separately stated
- 2023 average, median, highest, and lowest sales for the top 15%, top third, middle third, bottom third, and bottom 15% of the 17 affiliate-owned Paris Baguette Cafes that operated for the entire 2023 calendar year
- 2023 average, median, highest, and lowest sales for the top 15%, top third, middle third, bottom third, and bottom 15% of the 85 franchised (excluding kiosks) Paris Baguette Cafes that operated for the entire 2023 calendar year
- 2020, 2021, 2022, and 2023 average sales and guest count for the 13 affiliate-owned and 50 franchised Paris Baguette Cafes that operated since January 1, 2020, separately stated
Section VI – Key ratios, comparables, computations, and analyses for the Paris Baguette franchise opportunity (exclusive content for Platinum subscribers)
Section I – Paris Baguette Franchise Costs
- Initial Franchise Fee: $50,000
- Real Estate or Advance Rent and Security Deposit and Other Prepaid Expenses and Costs: $10,000 to $90,000
- Building Costs/Leasehold Improvements: $325,000 to $1,000,000
- Equipment and Fixtures: $167,956 to $315,000
- Signs: $7,500 to $25,000
- Smallwares: $25,000 to $30,000
- Point-of-Sale System Hardware, Software, and Surveillance Equipment: $8,000 to $14,500
- Opening Inventory: $36,000 to $48,000
- Grand Opening Promotion: $12,500
- Licenses, Permits, Fees, and Deposits: $4,510 to $18,710
- Miscellaneous Expenses: $11,159 to $16,500
- Insurance: $3,405 to $4,890
- Attorneys’ Fees and Business Consultants: $3,035 to $7,500
- Travel and Living Expenses While Training: $20,000 to $65,000
- Cost of Goods During Training: $4,000
- Additional Funds for First 3 Months of Operation: $30,000 to $100,000
- Total Estimated Paris Baguette Franchise Costs: $718,065 to $1,801,600
Section II – Paris Baguette’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Initial Franchise Fee: $40,000 to $50,000
- Royalty Fee: 5% of weekly Gross Sales
- Marketing Fund Fee: currently, 2% of weekly Gross Sales
- Local Marketing Requirement: currently, 1% of Gross Sales
Section III – Number of Franchised and Company-Owned Paris Baguette Outlets
Franchised
2021
- Outlets at the Start of the Year: 52
- Outlets at the End of the Year: 68
- Net Change: +16
2022
- Outlets at the Start of the Year: 68
- Outlets at the End of the Year: 98
- Net Change: +30
2023
- Outlets at the Start of the Year: 98
- Outlets at the End of the Year: 137
- Net Change: +39
Company-Owned
2021
- Outlets at the Start of the Year: 34
- Outlets at the End of the Year: 26
- Net Change: -8
2022
- Outlets at the Start of the Year: 26
- Outlets at the End of the Year: 20
- Net Change: -6
2023
- Outlets at the Start of the Year: 20
- Outlets at the End of the Year: 18
- Net Change: -2
Section IV – News Updates on the Paris Baguette Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Paris Baguette Franchise (Item 19, 2024 FDD)
- As of December 31, 2023, Paris Baguette had 99 franchised Cafes and 17 affiliate-owned Cafes that operated for the entire 2023 calendar year. Fourteen franchised Cafes operated as a kiosk and are not included in any of the tables.
- The below tables represent the Average Sales achieved by these Cafes during the 2023 calendar year.
Part 1 – 2023 Average Sales
Affiliate-Owned Cafes
- Total Number of Cafes: 17
- Average Sales: $3,265,331
- Percentage of Cafes at or Above Average: 47%
- Number of Cafes at or Above Average: 8
- Median Sales: $3,226,158
- Highest Sales: $5,254,510
- Lowest Sales: $1,939,759
Franchised Cafes
- Total Number of Cafes: 85
- Average Sales: $2,623,525
- Percentage of Cafes at or Above Average: 48.2%
- Number of Cafes at or Above Average: 41
- Median Sales: $2,615,577
- Highest Sales: $6,973,760
- Lowest Sales: $1,262,542
Affiliate-Owned and Franchised Cafes
- Total Number of Cafes: 102
- Average Sales: $2,739,236
- Percentage of Cafes at or Above Average: 48%
- Number of Cafes at or Above Average: 49
- Median Sales: $2,699,515
- Highest Sales: $6,973,760
- Lowest Sales: $1,262,542
Part 2 – 2023 Average Sales (Affiliate-Owned)
Top 15%
- Total Number of Cafes: 3
- Average Sales: $4,518,885
- Percentage of Cafes at or Above Average: 33.3%
- Number of Cafes at or Above Average: 1
- Median Sales: $4,263,607
- Highest Sales: $5,254,510
- Lowest Sales: $4,038,607
Top Third
- Total Number of Cafes: 5
- Average Sales: $4,258,898
- Percentage of Cafes at or Above Average: 40.0%
- Number of Cafes at or Above Average: 2
- Median Sales: $4,038,607
- Highest Sales: $5,254,510
- Lowest Sales: $3,860,083
Middle Third
- Total Number of Cafes: 6
- Average Sales: $3,220,355
- Percentage of Cafes at or Above Average: 66.7%
- Number of Cafes at or Above Average: 4
- Median Sales: $3,313,562
- Highest Sales: $3,435,296
- Lowest Sales: $2,869,201
Bottom Third
- Total Number of Cafes: 6
- Average Sales: $2,482,334
- Percentage of Cafes at or Above Average: 66.7%
- Number of Cafes at or Above Average: 4
- Median Sales: $2,716,450
- Highest Sales: $2,791,382
- Lowest Sales: $1,939,759
Bottom 15%
- Total Number of Cafes: 3
- Average Sales: $2,192,758
- Percentage of Cafes at or Above Average: 33.3%
- Number of Cafes at or Above Average: 4
- Median Sales: $1,960,757
- Highest Sales: $2,677,759
- Lowest Sales: $1,939,759
Part 3 – 2023 Average Sales (Franchised)
Top 15%
- Total Number of Cafes: 13
- Average Sales: $4,067,565
- Percentage of Cafes at or Above Average: 23.1%
- Number of Cafes at or Above Average: 3
- Median Sales: $3,856,731
- Highest Sales: $6,973,760
- Lowest Sales: $3,437,866
Top Third
- Total Number of Cafes: 28
- Average Sales: $3,583,028
- Percentage of Cafes at or Above Average: 39.3%
- Number of Cafes at or Above Average: 11
- Median Sales: $3,416,816
- Highest Sales: $6,973,760
- Lowest Sales: $2,936,092
Middle Third
- Total Number of Cafes: 28
- Average Sales: $2,596,646
- Percentage of Cafes at or Above Average: 50%
- Number of Cafes at or Above Average: 14
- Median Sales: $2,618,013
- Highest Sales: $2,931,726
- Lowest Sales: $2,224,953
Bottom Third
- Total Number of Cafes: 29
- Average Sales: $1,723,060
- Percentage of Cafes at or Above Average: 44.8%
- Number of Cafes at or Above Average: 13
- Median Sales: $1,687,527
- Highest Sales: $2,220,741
- Lowest Sales: $1,262,542
Bottom 15%
- Total Number of Cafes: 13
- Average Sales: $1,489,656
- Percentage of Cafes at or Above Average: 69.2%
- Number of Cafes at or Above Average: 9
- Median Sales: $1,521,789
- Highest Sales: $1,646,217
- Lowest Sales: $1,262,542
Part 4 – Historical Sales Data and Guest Counts for Paris Baguette Cafes That Operated for the Entire Calendar Years in 2020, 2021, 2022, and 2023
- The below tables present historical sales data and guest counts for Paris Baguette Cafes that operated for the entire calendar years in 2020, 2021, 2022, and 2023.
- During this period, Paris Baguette had 50 franchised Cafes and 13 affiliate owned Cafes that operated since January 1, 2020.
- All of the company-owned Cafes included in these tables are owned by Paris Baguette’s affiliate, PBA.
- PBA occasionally sells company-owned Cafes to be operated as franchised locations. Those locations are reported as franchised or company-owned depending whether they were sold in the first three quarters of a year (reported as franchised) or the last quarter of a year (reported as company-owned).
2020
- Average Sales (Affiliate-Owned Cafes): $1,314,293
- Average Sales (Franchised Cafes): $1,691,798
- Guest Count (Affiliate-Owned Cafes): 110,772
- Guest Count (Franchised Cafes): 101,234
2021
- Average Sales (Affiliate-Owned Cafes): $2,123,024
- Average Sales (Franchised Cafes): $2,281,697
- Guest Count (Affiliate-Owned Cafes): 168,555
- Guest Count (Franchised Cafes): 126,617
2022
- Average Sales (Affiliate-Owned Cafes): $3,033,363
- Average Sales (Franchised Cafes): $2,699,037
- Guest Count (Affiliate-Owned Cafes): 234,728
- Guest Count (Franchised Cafes): 142,357
2023
- Average Sales (Affiliate-Owned Cafes): $3,389,905
- Average Sales (Franchised Cafes): $2,795,807
- Guest Count (Affiliate-Owned Cafes): 261,536
- Guest Count (Franchised Cafes): 147,457
- Some outlets have sold these amounts. Your individual results may differ. There is no assurance that you will sell as much.
- These figures for “Average Sales” originate from Paris Baguette’s POS system, and reflect the revenues of Cafes. Paris Baguette also receive sales figures reported by franchisees. Paris Baguette has not audited or verified the reports. Nothing is deducted in these figures represented as “Average Sales.”
- “Percentage of Cafes at or Above Average” means the percentage of Cafes included in the data whose reported average sales are at or above the stated average, meaning that these Cafes performed better than the stated average.
- The sales figures from franchised Cafes are compiled from individual Cafes by using historical sales data that are reported to Paris Baguette by franchisees. Paris Baguette has not audited or verified the reports.
- Paris Baguette provides you sales data that includes average sales and the percentage of Cafes reporting who have attained or surpassed the stated average. This sales data does not include sales tax.
Section VI – Paris Baguette Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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