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Updated Recently5 & Diner vs La Madeleine Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of 5 & Diner 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 | $250,000 - $750,000 | $1,249,362 - $3,088,747 |
| Franchise Fee | $35,000 | $40,000 |
| Royalty Fee | 5% | 5% |
| Advertising Fee | - | 2.5% |
| Year Founded | 1987 | 1983 |
| Year Franchised | 1993 | 2011 |
| Term Of Agreement | 15-20 years | Term of agreement not renewable |
| Term Of Agreement | 15-20 years | Term of agreement not renewable |
| Renewal Fee | 25% of current franchise 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 | Ongoing training at franchisee's location | • 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 | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, 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, National media | • 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 |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 50 Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators) | - |
Expansion Plans |
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| US Expansion | - | Yes |
| Canada Expansion | No | - |
| International Expansion | No | Yes |
Company Overviews
About 5 & Diner
Kenneth E. Higginbotham opened the initial 5 and Diner eatery in Phoenix, Arizona in 1987. Eateries highlight a '50s subject, finish with jukeboxes, masters in poodle skirts and hula loop challenges. The menu incorporates top choices like ground sirloin sandwiches, sandwiches and plates of mixed greens. Breakfast is served throughout the day, and each 5 and Diner offers blue plate specials that incorporate messy joes, fish sticks and french fries, and spaghetti with meat sauce.
5 and Diner eateries additionally have a pop wellspring that serves milkshakes, egg cremes, coasts and enhanced soft drinks.
5 and Diner is a pioneer in the family-feasting eatery establishment portion, offering incredible sustenance and fun in a '50s themed environment. With another model outline made to bring out the exemplary roadside burger joint, 5 and Diner offers a solid venture open door for the single or multi-unit proprietor.
5 and Diner Franchise
Burger joints are the quintessential American experience - socially critical, offering buyers a dependable and agreeable place to eat. Their impact can be seen in many structures, including TV, films, books and fan clubs. This extraordinary interest and fascination makes owning a 5 and Diner eatery establishment an awesome venture.
As a family-feasting eatery, 5 and Diner offers many advantages over other eatery sections including:
Family Dining represents $33Billion in yearly deals and is balanced for development as shoppers request included esteem through sensible costs, menu assorted qualities and administration over numerous day parts*
Higher saw esteem for the cash spent on eating out
68% of buyers would be likely or greatly liable to visit a family eating eatery when they need a formal dinner at a reasonable price*
The most appropriate eatery decision for breakfast.
52% of purchasers would be likely or to a great degree liable to visit a family eating eatery for breakfast or early lunch on the weekend*
The family feasting eatery fragment has set up itself as a main decision for late-night diners*
half of customers show that late night hours are engaging or to a great degree appealing*
Family and child inviting climate and menu choices
About La Madeleine
- Traditional Café: $1,249,362 to $3,088,747 (excluding real estate and landlord allowances). This includes $43,630 that must be paid to the franchisor or their affiliates.
- Petite Café: $1,426,200 to $1,747,400. $390,983 to $1,718,012 (excluding real estate and landlord allowances). This includes between $20,000 and $43,630 that must be paid to the franchisor or their affiliates.
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