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Below is an in-depth analysis and side-by-side comparison of La Salsa Fresh Mexican Grill vs La Madeleine including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $189,550 - $992,590 | $1,249,362 - $3,088,747 |
Franchise Fee | $25,000 - $50,000 | $40,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | 3% | 2.5% |
Year Founded | 1979 | 1983 |
Year Franchised | 1989 | 2011 |
Term Of Agreement | 10 years | Term of agreement not renewable |
Term Of Agreement | 10 years | Term of agreement not renewable |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | • Passionate about the la Madeleine brand and our food • $5 million net worth; liquid assets of $2.5 million • Dedicated to developing multiple restaurants in a given market • Excellent knowledge of the local retail real estate market • Resources to develop and operate at least three (3) bakery cafés in a given territory • Strong track record as a multi-unit restaurant operator • Cultural fit | |
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/Yes |
Equipment | No/No | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/Yes |
Payroll | No/No | No/Yes |
Training & Support |
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Training | 6-8 weeks management training & at grand opening | • Ongoing field support • Store opening assistance • Continuous training • Extensive six-week training program for Operations Directors, General Managers, and Managers • Ongoing culinary development On-The-Job Training: 416 hours Classroom Training: 64 hours |
Support | Meetings, Field operations/evaluations, Purchasing cooperatives | Real Estate • Market evaluation and planning • Site selection assistance • LOI and contract negotiation assistance • In-house real estate resources • Identifying and securing local representation Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Co-op advertising, Ad slicks | • Grand opening assistance • Store opening and PR resources • Local marketing support • Creative support for national promotional events Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app |
Operations |
Franchisees required to buy multiple units/master licenses; 80% of all franchisees own more than one unit Number of employees needed to run franchised unit: 12 Absentee ownership of franchise is allowed. (70% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | - |
International Expansion | Yes | Yes |