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Below is an in-depth analysis and side-by-side comparison of Frullati Cafe & Bakery vs LaMar's Donuts including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $145,900 - $446,000 | $288,500 - $366,500 |
Franchise Fee | $30,000 | $28,500 |
Royalty Fee | 6% | 5% |
Advertising Fee | - | - |
Year Founded | 1985 | 1960 |
Year Franchised | 1994 | 1993 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | 75% of then-current fee | - |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | As needed |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations |
Marketing | Building sales takes effort on many different levels - from running your business with monitored food costs, to strong operations, to local store marketing, to most importantly ensuring that you give every customer a reason to return. The Frullati Cafe Marketing Team will assist you by creating national marketing initiatives and advertising that are key to building sales. Increasing sales takes diligent effort in all areas of your business. Co-op advertising, Ad slicks, Regional advertising | Co-op advertising, Ad slicks, National media, Regional advertising |
Operations |
Franchisees required to buy multiple units/master licenses; 35% of all franchisees own more than one unit Number of employees needed to run franchised unit: 6 Absentee ownership of franchise is allowed. (98% of current franchisees are owner/operators) |
Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | No |
International Expansion | Yes | No |
Ray Lamar found his way into the donut business at the age of 17, working as a fryer at a Kansas City, Missouri, shop. Lamar made his way up to being a partner in the company, but World War II cut the partnership short. Upon his return, Lamar earned a degree in economics and began a career as a stockbroker, but donuts remained the business he truly loved.
In 1960, nearly 30 years after first manning the fryer, Lamar opened his first LaMar's Donuts shop in Kansas City. The company began franchising in 1993 and is now based in Englewood, Colorado.