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Below is an in-depth analysis and side-by-side comparison of LaMar's Donuts vs The Hummingbird Bakery 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 | N/A |
Franchise Fee | $28,500 | N/A |
Royalty Fee | 5% | - |
Advertising Fee | - | - |
Year Founded | 1960 | - |
Year Franchised | 1993 | - |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | Previous experience in the food retail sector. Full day to day involvement with company operations, with an infrastructure dedicated to the development of the brand. Access to adequate capital, initial minimum cash investment of £1 million. Strong knowledge of market trends, real estate, governmental issues, distribution (including supply chain) and labour in your chosen market. Franchise partner must have the resources and be willing to send multiple managers and several key bakery employees to London for a 3 month training programme. Cultural ‘fit’ with The Hummingbird Bakery. | |
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 | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations | - |
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) | - |
Expansion Plans |
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US Expansion | - | - |
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.
The Hummingbird Bakery is the leader in American style baking in the UK. We always bake on site at each branch, daily and throughout the day to ensure our cakes and cupcakes are always fresh, beautiful and decorative. The Hummingbird Bakery does not franchise in the UK. The Hummingbird Bakery is now considering expansion opportunities in selected markets with experienced food retail franchisees. We require access to adequate capital, initial minimum cash investment of £1 million.