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Below is an in-depth analysis and side-by-side comparison of LaMar's Donuts 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 | $288,500 - $366,500 | $125,000 - $160,000 |
Franchise Fee | $28,500 | $25,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | - | 3% |
Year Founded | 1960 | 1984 |
Year Franchised | 1993 | 1986 |
Term Of Agreement | 10 years | 10 Years +10 |
Term Of Agreement | 10 years | 10 Years +10 |
Renewal Fee | - | - |
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 | As needed | 1. Head Office 1 Week 2. Franchised Store 1 Week 3. Own Store 1 Week |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations | 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, National media, Regional advertising | - |
Operations |
Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (75% 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 | No | Yes |
Ray Lamar found his way into the donut business at the age of 17, working as a fryer at a Kansas City, Missouri, shop. Lamar made his way up to being a partner in the company, but World War II cut the partnership short. Upon his return, Lamar earned a degree in economics and began a career as a stockbroker, but donuts remained the business he truly loved.
In 1960, nearly 30 years after first manning the fryer, Lamar opened his first LaMar's Donuts shop in Kansas City. The company began franchising in 1993 and is now based in Englewood, Colorado.
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.