Great Harvest vs House of Bread Franchise Comparison

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

Start-Up Costs and Fees
 
Great Harvest Franchise
House of Bread Franchise
Investment $69,613 - $704,873$157,000 - $347,000
Franchise Fee $35,000$35,000
Royalty Fee 5%6%
Advertising Fee 2.5%-
Year Founded 19761996
Year Franchised 19781998
Term Of Agreement 10 years10 years
Term Of Agreement 10 years10 years
Renewal Fee -$5K


Business Experience Requirements
 
Great Harvest Franchise
House of Bread Franchise
Experience
  • General business experience

  • General business experience
    		•

    Financing Options
     
    Great Harvest Franchise
    House of Bread Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/NoNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    Great Harvest Franchise
    House of Bread Franchise
    Training On-The-Job Training: 120 hours Classroom Training: 120 hours Additional Training: When necessary-
    Support Meetings/Conventions Toll-Free Line Grand Opening Field Operations Site Selection Franchisee Intranet Platform Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Ad Templates Regional Advertising Social media Website development Email marketing Loyalty program/appCo-op advertising, Ad slicks, Regional advertising
    Operations 10% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 5 - 7

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

    		 25% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 8

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Great Harvest Franchise
    House of Bread Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Great Harvest

    Pete Wakeman had been baking bread most of his life. As a child, he would help his aunt. In high school, he baked for his friends. During summer vacations, he sold bread from the roadside. In 1976, when Wakeman heard about a bakery in Great Falls, Montana, that was going under, he bought it. With the help of his wife, Laura, Wakeman established the Great Harvest Bread Co. and set about baking loaves for people in the Great Falls community. Soon, people from neighboring communities starting asking about setting up their own Great Harvest locations. The first franchise opened in Kalispell, Montana. In 1983, the Wakemans converted their Great Falls bakery into a franchise and moved company headquarters to Dillon, Montana, so they could concentrate on the franchising end of their business. Great Harvest bakeries serve a variety of breads each day including honey whole wheat, white cheddar garlic, sunflower and cranberry orange.

    The total investment necessary to begin operation of a Great Harvest bakery cafe franchise in a “Hub” location is $144,100 to $704,873. This includes $35,000 that must be paid to the franchisor or affiliate.
    The total investment necessary to begin operation of a Great Harvest bakery cafe franchise in a “Spoke” location is $69,613 to $447,536. This includes $15,000 that must be paid to the franchisor or affiliate.
    If you want development rights, you must pay the franchisor a development fee equal to the full initial franchise fee for the first bakery cafe ($35,000) plus a deposit of $7,500 (of the $15,000 initial franchise fee) for each additional bakery cafe you agree to develop. The total investment necessary to begin operation if you acquire development rights is $151,600 to $712,373. This includes $42,500 that must be paid to the franchisor or affiliate.
    Veteran Incentives  15% off franchise fee
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    About House of Bread

    After spending six years as a lawyer, Sheila McCann decided to do something different with her life. At Harvard Business School, she researched several business ideas before settling on a bread bakery. McCann had fond memories of baking with her grandmother as a child in Montana. Inspired by her grandmother's spirit of independence and endurance, she founded House of Bread in San Luis Obispo in 1996.

    The company targets its specialty breads to young professionals, health-conscious consumers and baby boomers looking to increase fiber in their diets. House of Bread lets customers sample its healthful, whole-grain breads and watch the bread being made. All stores feature on-site milling.