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Below is an in-depth analysis and side-by-side comparison of Kettleman's Bagel vs Factory 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 | $300,000 - $450,000 | $213,300 - $341,300 |
Franchise Fee | $25,000 | $20,000 |
Royalty Fee | 6% | 5% |
Advertising Fee | - | 2.5% |
Year Founded | 1992 | 2017 |
Year Franchised | 1996 | 2017 |
Term Of Agreement | 10 years | 10 years +10 |
Term Of Agreement | 10 years | 10 years +10 |
Renewal Fee | 25% of initial franchise 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 | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | - |
Support | Meetings, Toll-free phone line, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Co-op advertising | - |
Operations |
International franchisees required to buy multiple units/master licenses; 0% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8 - 10
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | Most Factory Donuts will employ 10-20 employees |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | - |
International Expansion | Yes | - |
A young company - long on tradition. That is why Kettleman's Bagel Company makes the best bagels around. However, tradition does not mean much if the authenticity is gone. Our bagels are made by bakers who knead the dough, cut it with a knife, roll it out by hand, boil it honey water to seal in the moisture, and bake them in a wood burning oven. Just the traditional and original attention to detail which one expects when they go to an old-fashioned bagel shop. Our system is easy - roll, kettle, and bake traditional bagels in a wood buring-oven using hand picked hardwood, and give each customer a bag full of hot bagels each time they come to Kettleman's Bagel Co. One of the reasons we are so successful is that we offer our customers a "no-wall" experience. When customers walk into our bagel shop, the first thing they see is the Kettleman's Bagel Roller working and rolling fresh bagels. Behind the Bagel Roller is the Baker who finishes the bagels with fresh poppy or sesame seeds and bakes them for about twenty minutes in our wood-burning oven. Once the process is complete, and it is an active process of carefully turning over the bagels away from the open hot wood flames, the bagels are ready to be eaten. The customers' "no-wall" experience means not only they get to watch the entire show, but also that they get to inspect our standards of production and hygiene. We have nothing to hide and our customers love it.
Factory Donuts is more than just a business of making great tasting donuts and coffee. It’s a culture. At Factory Donuts you will be part of a family; whether it’s as an employee or as a franchise partner. The founders' background and their beliefs for a well operated, highly efficient, and value oriented business strategy make Factory Donuts a stand out business model that others strive to be.
The business model at Factory Donuts is about simplicity and efficiency. Donuts are a billion dollar industry and growing. The idea of a fresh, made to order donut along with premium coffee drinks is a segment that Factory Donuts will fill.