Breadsmith vs Factory Donuts Franchise Comparison

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

Start-Up Costs and Fees
 
Breadsmith Franchise
Factory Donuts Franchise
Investment $380,250 - $454,750$213,300 - $341,300
Franchise Fee $30,000$20,000
Royalty Fee 7% - 5%5%
Advertising Fee -2.5%
Year Founded 19932017
Year Franchised 19932017
Term Of Agreement 15 years10 years +10
Term Of Agreement 15 years10 years +10
Renewal Fee $500-


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

    Financing Options
     
    Breadsmith Franchise
    Factory 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
    Factory 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)

    		Most Factory Donuts will employ 10-20 employees

    Expansion Plans
     
    Breadsmith Franchise
    Factory Donuts Franchise
    US Expansion YesYes
    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 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.