| ||||
Updated RecentlyHouse of Bread vs Factory Donuts Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of House of Bread vs Factory Donuts including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
||
| Investment | $157,000 - $347,000 | $213,300 - $341,300 |
| Franchise Fee | $35,000 | $20,000 |
| Royalty Fee | 6% | 5% |
| Advertising Fee | - | 2.5% |
| Year Founded | 1996 | 2017 |
| Year Franchised | 1998 | 2017 |
| Term Of Agreement | 10 years | 10 years +10 |
| Term Of Agreement | 10 years | 10 years +10 |
| Renewal Fee | $5K | - |
Business Experience Requirements |
||
| Experience | - | |
Financing Options |
||
| 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 |
||
| Training | - | - |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | - |
| 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) | Most Factory Donuts will employ 10-20 employees |
Expansion Plans |
||
| US Expansion | - | Yes |
| Canada Expansion | No | - |
| International Expansion | Yes | - |
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 Factory Donuts
Factory Donuts is more than just a business of making great tasting donuts and coffee. It’s a culture. At Factory Donuts you will be part of a family; whether it’s as an employee or as a franchise partner. The founders' background and their beliefs for a well operated, highly efficient, and value oriented business strategy make Factory Donuts a stand out business model that others strive to be.
The business model at Factory Donuts is about simplicity and efficiency. Donuts are a billion dollar industry and growing. The idea of a fresh, made to order donut along with premium coffee drinks is a segment that Factory Donuts will fill.