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Below is an in-depth analysis and side-by-side comparison of House of Bread vs Cindy's Cinnamon Rolls 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 | $69,000 - $130,500 |
Franchise Fee | $35,000 | $25,000 |
Royalty Fee | 6% | 5% |
Advertising Fee | - | - |
Year Founded | 1996 | 1985 |
Year Franchised | 1998 | 1986 |
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 | - | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter, Toll-free phone line, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op advertising, Ad slicks, Regional advertising | Ad slicks |
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) |
10% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8 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 | Yes |
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.
Cindy and Tom Harris were inspired to open their own shop after seeing customers line up to watch warm cinnamon rolls come out of the oven at a bakery. The couple felt making and selling warm cinnamon rolls in a mall would be a hit, so they opened their first Cindy's Cinnamon Rolls store in Fort Collins, Colorado, in 1985. Customers were drawn to the store by the smell of the baking rolls, and would line up for the warm rolls and coffee.
Cindy's began franchising in 1986 and now has stores in malls across the United States in addition to several international locations.