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Updated RecentlyHouse of Bread vs LaMar's Donuts Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of House of Bread vs LaMar's Donuts including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $157,000 - $347,000 | $288,500 - $366,500 |
| Franchise Fee | $35,000 | $28,500 |
| Royalty Fee | 6% | 5% |
| Advertising Fee | - | - |
| Year Founded | 1996 | 1960 |
| Year Franchised | 1998 | 1993 |
| Term Of Agreement | 10 years | 10 years |
| Term Of Agreement | 10 years | 10 years |
| Renewal Fee | $5K | - |
Business Experience Requirements |
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| Experience | ||
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/No |
| Equipment | No/No | No/No |
| Inventory | No/No | No/No |
| Receivables | No/No | No/No |
| Payroll | No/No | No/No |
Training & Support |
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| Training | - | As needed |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations |
| Marketing | Co-op advertising, Ad slicks, Regional advertising | Co-op advertising, Ad slicks, National media, Regional advertising |
| Operations |
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) |
Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators) |
Expansion Plans |
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| US Expansion | - | - |
| Canada Expansion | No | No |
| International Expansion | Yes | No |
Company Overviews
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.
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.