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Below is an in-depth analysis and side-by-side comparison of House of Bread vs Lee's Sandwiches 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 | $235,830 - $1,830,000 |
Franchise Fee | $35,000 | $35,000 - $75,000 |
Royalty Fee | 6% | 6.9% |
Advertising Fee | - | 2%local +2%Nat'l |
Year Founded | 1996 | - |
Year Franchised | 1998 | - |
Term Of Agreement | 10 years | 10 years +5+5+5 |
Term Of Agreement | 10 years | 10 years +5+5+5 |
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 | - | Your or your designated manager will be required to attend an initial training course of 12 weeks for a Production Unit, 8 weeks for a Non-Production Unit or Mall Unit. This initial training will focus on various aspects of your restaurant and include both classroom and on-the-job training. |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | *For approximately 10 days we will furnish one of our representatives on site for opening and operations assistance. *provide operational assistance and guidance *loan you a copy of the LEE'S SANDWICHES operations manual |
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.