Paris baguette franchise

Hassle-free business loans to start your Paris baguette franchise.

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.

Paris baguette business details

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 such as Illy and Aroma Espresso Bar, 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:

  • US stores: Approximately 150
  • Required Investor net worth: $1,500,000
  • Required investor liquid cash: $500,000
  • Min. investment: $653,000
  • Max. investment: $1,750,000
  • Standard franchise term: 10 years

Can I start a Paris baguette franchise?

You’ll need a minimum net worth of $1,500,000 and liquid cash of at least half a million dollars. 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.

How much does a Paris baguette franchise cost?

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 $650,000 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:

  • Royalty fee: 5% of weekly gross sales
  • Marketing fund fee: 2% of weekly gross sales
  • Local marketing fee: 1% gross sales
  • Renewal fee: $9,600
  • Additional site evaluation fee: Current fee plus company’s expenses
  • Software fee: $500 to $700
  • Additional/refresher training: $250 per day per trainer plus expenses
  • Transfer fee: $40,000
  • Renewal fee: 50% current franchise fee
  • Relocation fee: 25% current franchise fee
  • Audit fee: Entire cost of audit

Estimated key costs to open a Paris Baguette franchise:

Key Costs GuideLowHigh
Franchise fee$45,000$45,000
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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Are Paris baguette franchises profitable?

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.

What is the failure rate for a Paris baguette franchise?

Low to almost nil. The failure rate of a Paris Baguette franchise in 2023 was 0%.

Why should you start a Paris baguette franchise?

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.

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What are the franchise territory policies for Paris baguette?

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 authorize 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.

What franchise resources does Paris baguette offer?

Paris Baguette support for franchisees includes:

  • Training: Before the café opens for business, the operating principal, store manager (if applicable) and eight to ten food production employees, must have attended and satisfactorily completed the initial training program. Classroom training occurs at the franchisor’s Moonachie, New Jersey, Santa Clara or Costa Mesa, California training Centers, and/or online. Currently, training consists of approximately 480 total hours of instruction. The franchisor may also conduct seminars or conventions from time-to-time for the benefit of all franchisees whose attendance may or may not be mandatory.
  • Marketing support: Paris Baguette provides promotional and other marketing support for their franchisees.
  • Third-party financing: Paris Baguette provides no financial support for investors seeking franchise funding. Instead you may be able to obtain economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

What is the process for starting a Paris baguette franchise?

It begins with an application. Start the process here.

Secure franchise funding with Swoop

Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new café business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Testimonials

Written by

Chris Godfrey

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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

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Article sources
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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Profitability: https://www.vettedbiz.com/paris-baguette-franchise/

Paris Baguette franchise application: https://1851franchise.com/parisbaguette

Paris Baguette: https://ownaparisbaguette.com/

Failure rate: https://www.franchimp.com/?page=franchisor&name=undefined&id=102033

Set-up costs: https://www.franchisedirect.com/foodfranchises/paris-baguette-franchise-13788/ufoc/

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