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Below is an in-depth analysis and side-by-side comparison of House of Bread vs Mrs. Powell's Bakery Eatery 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 | $125,000 - $160,000 |
Franchise Fee | $35,000 | $25,000 |
Royalty Fee | 6% | 5% |
Advertising Fee | - | 3% |
Year Founded | 1996 | 1984 |
Year Franchised | 1998 | 1986 |
Term Of Agreement | 10 years | 10 Years +10 |
Term Of Agreement | 10 years | 10 Years +10 |
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 | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | 1. Head Office 1 Week 2. Franchised Store 1 Week 3. Own Store 1 Week |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Field Operation Evaluation Field Training Initial Store Opening Inventory Control Franchisee Newsletter Regional or National Meetings: At Additional Cost |
Marketing | Co-op 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) | Average Number of Employees: 2 Full-time, 4 Part-time Passive Ownership: Allowed, But Discouraged |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | 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.
Mrs. Powell's has been in business since 1984. We specialize in Cinnamon Rolls, but we do much more than that! We have white and wheat bread, dinner rolls, sugar cookies, chocolate chip cookies, brownies, soup, sandwiches and so much more. What we really do is take care of one of the things you don't have time for anymore - baking. We cater and are always up for custom creations.