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Below is an in-depth analysis and side-by-side comparison of House of Bread vs Treats 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 | $121,000 - $260,000 |
Franchise Fee | $35,000 | $25,000 |
Royalty Fee | 6% | 7% |
Advertising Fee | - | 1% |
Year Founded | 1996 | 1977 |
Year Franchised | 1998 | 1979 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 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 | -/- |
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. Training Center 2 Weeks 2. On-Site |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Central Purchasing Field Operation Evaluation Field Training Initial Store Opening Franchisee Newsletter Regional or National Meetings 800 Telephone Hotline |
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: 3 Full-time, 2 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.
Micro-bakery concept, featuring gourmet and specialty coffees and fresh-baked, on-site baked goods, including muffins, cookies and bagels. Three concept variations are available: TREATS BAKERY (~400 SF) serves the base menu offering; TREATS CAFE (~1,200 SF) also serves sandwiches (baguettes), soups and salads; TREATS COFFEE EMPORIUM (~1,200 SF) also offers coffee beans, coffee-related merchandise and sandwiches.