Paris Baguette is a franchised café/bakery organisation who operate modern and inviting eateries that sell a variety of French-inspired breads, pastries, cakes, sandwiches and other products.
Originally founded in South Korea in 1986 and now headquartered in Moonachie, New Jersey, Paris Baguette has offered franchise opportunities since inception. Claiming to deliver a better café/bakery customer experience than competitors. The company has more than 4,000 locations worldwide and is aiming to surpass 1,000 cafés in the US and Canada by 2030. They added 40 new locations in 2023.
Paris Baguette at a glance:
You’ll need a minimum net worth of £1,500,000 and liquid cash of at least half a million pounds. You’ll also need to meet start-up costs that can run close to £2 million. Paris Baguette allows franchisees to designate a principal manager to take the necessary training and manage the day-to-day operations of the café. This makes this franchise suitable for passive investment.
This is a chain that likes to keep things authentic, and they’ve managed that right through to the initial investment. Like almost everything else in their namesake city, opening a Paris Baguette franchise is not cheap. Start-up costs range from £500,000 to £1,750,000, ranking as high to very high.
The initial franchise fee is £50,000. Military veterans may qualify for a 15% discount off this fee.
After opening, you are required to pay an array of ongoing fees and charges. They include:
| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | £50,000 | £50,000 |
| Business premises advance rent and deposits | £10,000 | £90,000 |
| Construction costs/leasehold improvements | £250,000 | £1,000,000 |
| Equipment and fixtures | £168,000 | £243,000 |
| Signage | £19,500 | £49,000 |
| Smallwares | £25,000 | £30,000 |
| POS, software and surveillance systems | £8,000 | £14,500 |
| Initial inventory | £36,000 | £48,000 |
| Grand opening costs | £10,000 | £10,000 |
| Professional fees | £3,000 | £7,500 |
| Training expenses – travel and accommodation | £20,000 | £65,000 |
| Additional costs – first three months | £30,000 | £100,000 |
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Yes, very much so. The median annual sales of a Paris Baguette franchise were £2,135,000 in 2021 and they delivered average profits of 10% to 20%. The middle ground – profits of 15% – would generate net income of £320,000 and repay the current maximum investment in approximately 6 years. This ranks as excellent.
Low to almost nil. The failure rate of a Paris Baguette franchise in 2023 was 0%.
Almost zero failure rate, excellent profits, an organisation that is growing at an almost exponential rate and the chance to own and operate the business as a passive investor. What’s not to like about that? The only concern is the lack of an exclusive territory. If you can get past that, meet the fairly hefty start-up costs and you like the idea of owning a little patch of France whilst making excellent income, a Paris Baguette franchise could be the opportunity for you.
Franchisees do not receive an exclusive territory and may face competition from other Paris Baguette franchisees, from outlets that the company owns, or from other channels of distribution or competitive brands that the franchisor controls. Instead, Paris Baguette promises not to establish or authorise anyone except the franchisee to establish a Paris Baguette store in a ‘protected area’ during the term of the contract. The actual size of the protected area is determined, at the company’s sole discretion, by traffic patterns, population density, income level and the number of households and businesses in the area. Depending on these factors, in some cases, the franchisee may not receive a protected area at all.
Paris Baguette support for franchisees includes:
It begins with an application. Start the process today.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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