Panera Bread Franchise Startup Cost, Revenue and Profit Margin

Who owns Panera Bread franchises? The Panera bread franchise initially started out as Au Bon Co. In 1993, it bought over a similar company known as the St. Louis Bread Company. Since then, this franchise has expanded its operations to become a national franchise spread across the states.

Since it started, its units have grown to over 2,000. These are all franchise-operated.

Brief History of Panera Bread Franchise

This franchise opportunity opened its doors for business in 1981. It started franchising the same year it was established. Located in St. Louis, Missouri, Panera Bread franchise is health conscious and provides healthy diet options to its customers.

Paneral Bread Franchise Products

Panera offers you the opportunity of owning a bread bakery-café. Here, you will be involved in retail sales of freshly baked products including custom roasted coffees, sandwiches, salads, soups and many more products which may be permitted by the franchisor as it deems fit. This of course is in addition to its bread products.

Read: Nothing Bundt Cakes Franchise

Financial Requirements

To become a Panera Bread franchisee, there are certain financial obligations required of you. These include a franchise fee of $35,000, a liquid capital requirement of $1,200,000, a net-worth requirement of $3,000,000, and an investment ranging from $942,200 to $1,600,000.

The following are details/breakdown of the types of fee as well as cost range you are expected to incur;

Type of Fee Low High

  • Franchise fee $35,000 $35,000
  • Supplies and Inventory $19,000 $25,000
  • Fixtures $49,000 $89,000
  • Consultant Fees $30,000 $183,000
  • Furniture $48,000 $86,000
  • Real Property V      A      R      I      E      S
  • Optional Technology
  • Systems $0 $172,000
  • Leasehold Improvements $364,000 $1,778,000
  • Equipment $301,000 $448,000
  • Signage $22,000 $97,000
  • Small wares $23,000 $62,000
  • Additional Funding $175,000 $245,000
  • Real Estate and other
  • related costs V     A     R     I     E     S

Additional fees to be borne by the franchisee include the following as well;

  • Royalties: This makes up 5% of net sales.
  • Marketing Advertising Fee; 4% of your net salesis to be committed for this.
  • Proprietary Ingredients; Here, not more than 27% of retailis to be paid for dough. However the cost for other proprietary ingredients is set by suppliers. This may be adjusted depending on various factors.
  • Re-Inspection fee; In the event that there is need for re-inspection, the franchisee is expected to be charged a fee of $3,500.
  • Other Food Products and Supplies and Distribution Fees; there is no fixed cost for this.
  • Licensed Ingredients; Suppliers approved by Panera Bread franchise fix the cost for these ingredients themselves.
  • National Advertising Fund; This makes up 6% of net sales.
  • Local Advertising Fund; is 2% of net sales
  • Advertising Association; the fee cost is set by the association.
  • Miscellaneous Administrative Fee; Panera Bread franchise determines how much franchisees are to pay.
  • Renewal; In the event of franchise renewal, you are expected to pay half of the then current initial franchise fee.
  • Attorneys Fees and Other Costs: varies
  • Transfer; $7,500 including cost.
  • Maintenance Cost; Maintenance cost also varies depending on the circumstances
  • Indemnification; varies
  • Site Selection Costs; the cost for this varies from $1,500 to $4,000.
  • Insurance; varies
  • Interest accrued on Late Payments; 2% over prime rate.
  • Audit Costs; In a situation where the franchisee has maintained adequate records and book, the cost will range from $30,000 to $70,000.

These detailed costs are a summary of some of the financial fees you are expected to pay as contained in the first paragraph under the financial requirements section.

How Much Can You Make as a Panera Bread Franchisee?

It is expected that this will be a pressing question for any prospective franchisee. The key lies in its developmental plan. Under this plan, prospective franchisees are expected to become franchise developers themselves. Here, you are required to open multiple units which averages 15 or more units over a six-year period.

This expansion plan pays off significantly. Forbes Business Magazine recently published an article that reveals that Panera Bread franchisees earn over $2.47 million per annum. If you wish to get details on this, the Franchise Disclosure Document will provide you with the information you need to know. To obtain the FDD, you will have to signify your interest to become its franchisee by applying.

What do You Need to Qualify as a Franchisee?

Apart from the financial requirements, you are also expected to have adequate experience in operating a top restaurant. Others include being passionate for the job as well as fitting into its culture. In order to qualify, you need to be sufficiently motivated to promote the Panera Bread brand as well as having real estate experience in this area of business.

Support and Training

Panera offers its franchisees adequate support and training to ensure they succeed in running its franchise. At the moment, details regarding its training are not provided. However, the Franchise Disclosure Document reveals everything you need to know on support and training

How to Apply

If you want to own a part of this franchise opportunity, simply visit https://www.panerabread.com/en-us/company/franchise-overview.html  . You will find an online application form where you are expected to carefully fill and submit. After this, your application is reviewed, and if you qualify, you are contacted with further instructions on what you need to do.

The Panera Bread franchise has grown over the years into a strong brand. As a prospective franchisee, you are expected to go through the information provided here as well as compare with those provided on its website. This is because this is frequently updated to capture new developments by the franchise.