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Updated RecentlyHouse of Bread vs Bruegger's Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of House of Bread vs Bruegger's 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 | $389,600 - $591,600 |
| Franchise Fee | $35,000 | $30,000 |
| Royalty Fee | 6% | 5% |
| Advertising Fee | - | - |
| Year Founded | 1996 | 1983 |
| Year Franchised | 1998 | 1993 |
| Term Of Agreement | 10 years | 10 years |
| Term Of Agreement | 10 years | 10 years |
| Renewal Fee | $5K | 25% of then-current franchise fee |
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 | Grand opening, Field operations/evaluations |
| Marketing | Co-op advertising, Ad slicks, Regional advertising | Ad slicks, 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) |
Franchisees required to buy multiple units/master licenses; 95% of all franchisees own more than one unit
Absentee ownership of franchise is allowed. (66% of current franchisees are owner/operators) |
Expansion Plans |
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| US Expansion | - | Yes |
| 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 Bruegger's
When Nord Brue and Mike Dressell started Bruegger's in 1983, they actually founded the retail bagel concept. Up until that point, bagels were considered mostly an ethnic food and were not known much outside of New York. At that time, less than one-third of Americans had ever tasted a bagel. From their home base in Burlington, Vermont, Brue and Dressell pioneered a new concept that expanded the traditional bagel bakery into a quick service bakery with premium specialty cream cheeses, custom-made sandwiches, signature soups and exceptional coffee. They worked with a professional bagel baker from New York City for 2 1/2 years to perfect their recipe and baking process. In 2004, Bruegger's welcomed new ownership and expanded beyond bagels into breads, wraps and other lunchtime menu items, and began updating bakeries to reflect the welcoming feel of a New England farmhouse-inspired bakery-cafe that Bruegger's has evolved into. Today, almost 40 years after the first Bruegger's opened in Troy, New York, there are almost 300 Bruegger's locations throughout the U.S., with more on the way.