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Below is an in-depth analysis and side-by-side comparison of Hooters vs La Madeleine including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $956,500 - $4,275,000 | $1,249,362 - $3,088,747 |
Franchise Fee | $75,000 | $40,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | 2.5% | 2.5% |
Year Founded | 1983 | 1983 |
Year Franchised | 1986 | 2011 |
Term Of Agreement | - | Term of agreement not renewable |
Term Of Agreement | - | Term of agreement not renewable |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | - | • Passionate about the la Madeleine brand and our food • $5 million net worth; liquid assets of $2.5 million • Dedicated to developing multiple restaurants in a given market • Excellent knowledge of the local retail real estate market • Resources to develop and operate at least three (3) bakery cafés in a given territory • Strong track record as a multi-unit restaurant operator • Cultural fit |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | -/Yes | No/No |
Start-up Costs | -/Yes | No/Yes |
Equipment | -/Yes | No/Yes |
Inventory | -/Yes | No/Yes |
Receivables | -/Yes | No/Yes |
Payroll | -/Yes | No/Yes |
Training & Support |
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Training | On-The-Job Training: Varies Classroom Training: Varies | • Ongoing field support • Store opening assistance • Continuous training • Extensive six-week training program for Operations Directors, General Managers, and Managers • Ongoing culinary development On-The-Job Training: 416 hours Classroom Training: 64 hours |
Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Security/Safety Procedures Field Operations Site Selection | Real Estate • Market evaluation and planning • Site selection assistance • LOI and contract negotiation assistance • In-house real estate resources • Identifying and securing local representation Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Ad Templates National Media Regional Advertising Social media Website development Loyalty program/app | • Grand opening assistance • Store opening and PR resources • Local marketing support • Creative support for national promotional events Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app |
Operations | - | - |
Expansion Plans |
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US Expansion | No | Yes |
Canada Expansion | - | - |
International Expansion | Yes | Yes |
There are no franchise opportunities available in the United States. Every region has been sold and our franchisees are not allowed to sub-franchise. International Hooters of America has franchise opportunities in the following countries: * Baltic States * Belorussia * Benelux * Bolivia * Bulgaria * Canada (Newfoundland) * Czech Republic * Denmark * Dominican Republic * Ecuador * Finland * France (multi-territory) * Hungary * Iceland * Italy (multi-territory) * Netherlands * Norway * Poland