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Below is an in-depth analysis and side-by-side comparison of House of Bread vs The Donut Baker 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 | $68,000 - $150,000 |
Franchise Fee | $35,000 | $20,000 |
Royalty Fee | 6% | 6% |
Advertising Fee | - | 2%local +2%Nat'l |
Year Founded | 1996 | - |
Year Franchised | 1998 | - |
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 | - | The Donut Baker Academy offers a broad range of technical and managerial courses. The training is designed to provide you with the key skills required to run your stores with a passion for quality - a passion your customers will sense and appreciate through their overall experience at the store. The Donut Baker also offers onsite training by its experienced professionals and has a specialized team taht can assist your local team in opening a new store. |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | The Donut Baker will support you from the moment you sign a contract to the time your store - or stores - open. And the support continues during operation through continuous monitoring of your store, helping you to achieve a consistent high level of customer experience. We also help you promote your business by marketing the brand effectively within your territory. Because our ultimate goal is the same as yours - to generate solid returns on investment by running the business professionally and with the full support of The Donut Baker's proven systems. |
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) | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | - |
International Expansion | 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.
Becoming a successful franchisee with The Donut Baker isn't as daunting as it might seem. Naturally, there will be challenges but the basic requirements you need to overcome them and make your franchise work are assets you probably already possess. Essentially, we at The Donut Baker look for highly motivated organizations or entrepreneurs with a sincere commitment to building a retail brand in their territory. More specifically, we believe that to succeed in the franchise business one needs to have the 3 Cs - Capital, Commitment, and Competence. And the same applies to you as an aspiring franchisee.