Breadsmith vs LaMar's Donuts Franchise Comparison

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

Start-Up Costs and Fees
 
Breadsmith Franchise
LaMar's Donuts Franchise
Investment $380,250 - $454,750$288,500 - $366,500
Franchise Fee $30,000$28,500
Royalty Fee 7% - 5%5%
Advertising Fee --
Year Founded 19931960
Year Franchised 19931993
Term Of Agreement 15 years10 years
Term Of Agreement 15 years10 years
Renewal Fee $500-


Business Experience Requirements
 
Breadsmith Franchise
LaMar's Donuts Franchise
Experience
  • General business experience
  • Marketing skills helpful but not necessary

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    Breadsmith Franchise
    LaMar's Donuts 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/YesNo/No
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support
     
    Breadsmith Franchise
    LaMar's Donuts Franchise
    Training On-The-Job Training: 219.5 hours Classroom Training: 51 hours As needed
    Support Purchasing Co-ops Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations
    Marketing Ad Templates Social media SEO Website development Email marketingCo-op advertising, Ad slicks, National media, Regional advertising
    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)

    Number of employees needed to run franchised unit: 15

    Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators)

    Expansion Plans
     
    Breadsmith Franchise
    LaMar's Donuts Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion NoNo

    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 LaMar's Donuts

    Ray Lamar found his way into the donut business at the age of 17, working as a fryer at a Kansas City, Missouri, shop. Lamar made his way up to being a partner in the company, but World War II cut the partnership short. Upon his return, Lamar earned a degree in economics and began a career as a stockbroker, but donuts remained the business he truly loved.

    In 1960, nearly 30 years after first manning the fryer, Lamar opened his first LaMar's Donuts shop in Kansas City. The company began franchising in 1993 and is now based in Englewood, Colorado.