Panera Bread/Saint Louis Bread Company vs Factory Donuts Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Panera Bread/Saint Louis Bread Company vs Factory Donuts including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Panera Bread/Saint Louis Bread Company Franchise
Factory Donuts Franchise
Investment $1,010,985 - $2,252,846$213,300 - $341,300
Franchise Fee $35,000$20,000
Royalty Fee 5%5%
Advertising Fee -2.5%
Year Founded 19872017
Year Franchised 19932017
Term Of Agreement 20 years10 years +10
Term Of Agreement 20 years10 years +10
Renewal Fee --


Business Experience Requirements
 
Panera Bread/Saint Louis Bread Company Franchise
Factory Donuts Franchise
Experience

*Experience as a multi-unit restaurant operator *Recognition as a top restaurant operator *Net worth of $7.5 million *Liquid assets of $3 million *Infrastructure and resources to meet our development schedule *Real estate experience in the market to be developed *Total commitment to the development of the Panera Bread brand *Cultural fit and a passion for fresh bread

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Financing Options
 
Panera Bread/Saint Louis Bread Company Franchise
Factory Donuts Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/No-/-
Start-up Costs No/No-/-
Equipment No/No-/-
Inventory No/No-/-
Receivables No/No-/-
Payroll No/No-/-

Training & Support
 
Panera Bread/Saint Louis Bread Company Franchise
Factory Donuts Franchise
Training --
Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations-
Marketing Co-op advertising, Ad slicks, National media, Regional advertising-
Operations Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit

Number of employees needed to run franchised unit: 40 - 60

Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

Most Factory Donuts will employ 10-20 employees

Expansion Plans
 
Panera Bread/Saint Louis Bread Company Franchise
Factory Donuts Franchise
US Expansion YesYes
Canada Expansion No-
International Expansion No-

Company Overviews

About Panera Bread/Saint Louis Bread Company

After more than 17 years in the retail industry, Ken Rosenthal changed gears and founded Saint Louis Bread Co. in 1987. His goal was to create a neighborhood bakery where people could pick up fresh-baked bread, meals and snacks. In 1993, Rosenthal sold Saint Louis Bread to Au Bon Pain Co. Six years later, the company was renamed Panera Bread. The future growth of Panera Bread will be based upon company bakery-cafe development as well as the continued sale of franchise area development agreements. Panera Bread does not sell single-unit franchises, so it is not possible to open just one bakery-cafe. Rather, we have chosen to develop by selling market areas which require the franchise developer to open a number of units, typically 15 bakery-cafes in a period of 6 years. Panera Bread franchises must be well-capitalized to open great bakery-cafes and meet this aggressive development schedule. Additionally, they must have a proven track record as excellent multi-unit restaurant operators to operate great Panera Bread bakery-cafes.

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About Factory Donuts

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.