Breadsmith vs Southern Maid Donuts Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Breadsmith vs Southern Maid Donuts including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Breadsmith Franchise
Southern Maid Donuts Franchise
Investment $380,250 - $454,750$64,000 - $227,000
Franchise Fee $30,000$5,000
Royalty Fee 7% - 5%-
Advertising Fee --
Year Founded 1993-
Year Franchised 1993-
Term Of Agreement 15 years-
Term Of Agreement 15 years-
Renewal Fee $500-


Business Experience Requirements
 
Breadsmith Franchise
Southern Maid Donuts Franchise
Experience
  • General business experience
  • Marketing skills helpful but not necessary
    		• -

    Financing Options
     
    Breadsmith Franchise
    Southern Maid Donuts Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/Yes-/-
    Start-up Costs No/Yes-/-
    Equipment No/Yes-/-
    Inventory No/Yes-/-
    Receivables No/Yes-/-
    Payroll No/Yes-/-

    Training & Support
     
    Breadsmith Franchise
    Southern Maid Donuts Franchise
    Training On-The-Job Training: 219.5 hours Classroom Training: 51 hours -
    Support Purchasing Co-ops Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform -
    Marketing Ad Templates Social media SEO Website development Email marketing-
    Operations 10% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 20

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

    		-

    Expansion Plans
     
    Breadsmith Franchise
    Southern Maid Donuts Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion No-

    Company Overviews

    About Breadsmith

    While studying in Norway, college student Dan Sterling got his first taste of European bread. Sterling returned to the United States and graduated from Harvard Business School before starting his own company. But he never lost his love of bread, and after volunteering to help a local bakery with its accounting, he decided to launch a bakery of his own. He opened the first Breadsmith location in 1993, and the company began franchising in 1994.

    The total investment necessary to begin operation of a Breadsmith primary franchise store is $380,250 to $449,750 ($377,250 - $451,750 for veterans). This includes $100,000 to $115,000 (less $3,000 if you are a veteran) that must be paid to the franchisor or affiliate.
    An additional investment of $95,500 to $163,500 is necessary if a satellite location is opened in connection with the primary store. This includes $5,000 that must be paid to the franchisor or affiliate.
    Veteran Incentives  10% off franchise fee


    "Entrepreneur
    #333 in Franchise 500 for 2020.
    #333 in Franchise 500 for 2021.



    About Southern Maid Donuts

    Southern Maid Donuts began in 1937 by Mr. and Mrs. J.B. Hargrove. A young couple coming out of the throws of the Great Depression, they created Southern Maid because they saw the need in the market for quality donuts. They created their own recipes, which have stood the test of time. Quality ingredients and uncompromised procedures are reason for the continued success of the Hargrove family to this very day.

    The product was so well accepted that besides selling donuts in their privately owned shops that they were sought out by individuals wanting to use Southern Maid products in their own bakeries and stores. The Hargrove couple began to license their trademark and to help individuals realize their dreams of owning their own businesses. Today, Southern Maid is used in over 100 stores.

    The Southern Maid name came about because of being from the South. Mr. and Mrs. Hargrove wanted a name that encompassed a feeling as well as humble southern traditions and memories. Part of this Southern Maid tradition was a large sponsorship for several years of the Louisiana Hayride Show in Shreveport, Louisiana. Many a young entertainer sang the praises of Southern Maid Donuts. An interesting note: Elvis did the only commercial of his life for any product on November 6th, 1954 for Southern Maid Donuts. He sang the jingle. "You can get them piping hot after 4 P.M., you can get them piping hot, Southern Maid Donuts hits the spot, you can get them piping hot after 4 P.M." Elvis frequented the Shreveport store for donuts on his visits to the Louisiana Hayride. Other entertainers that sang the praises of Southern Maid include Minnie Pearl, Johnny Horton, and Johnny Cash. The Johnny Cash version was released on the Best of the Louisiana Hayride Volume 4.

    Southern Maid products are also used institutionally in the form of pancake and muffin mixes. The Hargroves had created a pancake mix for home use. Over time, the mix was given to friends and family members. The requests for the mix got so large that they began to package it in 50-pound bags for selling to hotels and restaurants.

    Southern Maid has remained a tradition in the South because of the continued use of quality ingredients and procedures. We have been family owned since inception in 1937. Though Mr. and Mrs. Hargrove have since passed on, Southern Maid has evolved into the second and third generations of family ownership and management.