Frequently Asked Questions

We will answer some of the most commonly asked questions below. However, if you have any further questions, please do not hesitate to contact us.

Finance Issues 

Q. HOW MUCH MONEY WILL I NEED? 
We require that you have financial resources to fund $250,000. We estimate this to be the average cost of opening a store, including working capital. This could easily vary 20% either way, depending on your area, whether you buy new or used equipment, any "deals" you may get, and whether or not you are willing to assist in the building out of the site.

Q. HOW MUCH CAN I BORROW? 
Generally, you will need $125,000 in cash, in order to be eligible for a Small Business Administration backed loan. (Keep in mind that $70,000 of the $125,000 can be obtained through a home equity loan). We can assist you with a well-developed business plan in order to secure financing for the remaining capital investment through a local bank.

Q. HOW MUCH MONEY WILL I MAKE? 
Federal law prevents us from answering that question at this time. However, when serious franchise discussions begin, you will be furnished with a disclosure document. We can supply actual results from operations to date to help educate you but we do not guarantee the same results.

Q. HOW MUCH IS YOUR FEE? 
We charge an initial fee of $32,000, plus an ongoing royalty of 6% of gross sales remitted weekly. The term of the franchise agreement is ten years. We do have a multi-unit agreement with a reduction in the initial franchise fee.  

Q. CAN I SELL MY HOUSE OF BREAD FRANCHISE? 
Yes, a House of Bread franchise is a business with equity that can be bought and sold. Just as we reserve the right to approve you as an original franchise owner, we reserve the right to approve any subsequent buyer.  

Support and Training

Q. WHAT SERVICES WILL YOU PROVIDE? 
We will provide technical assistance in the areas of:

• Financial projections and business plan design

• Bakery location selection with demographic requirements and recommendations 

• Store layout 

• Equipment procurement sources, new and used 

• Detailed equipment and supplies list 

• Owner training at House of Bread and your store

• Set up of employee schedules and pay recommendations 

• Employee training, at your store and an employee manual 

• Operational control systems including employee handling recommendations, register controls, product pricing guidelines, and production trouble shooting techniques. 

• Use of the House Of Bread accounting, billing and financial systems. 

• Advertising and promotion (start up & ongoing) 

• Format and suggestions for initial press releases 

• Onsite training during your first business days one day visit within 90 days of opening 

• Telephone, fax and E-mail support 

• Normal visits at varying intervals 

• Proven recipes 

• Production schedules 

• Wholesale strategies and systems

Q. AM I GOING TO BE GIVEN INFORMATION IN WRITING? 
Yes, we will be loaning you a copy of the confidential operations manual, which contains all the explanations and specifications regarding the baking instructions, equipment procurement, site selection, operational controls, accounting procedures, performance standards, advertising programs and merchandising suggestions. The manual is updated from time to time by the franchiser.

Q. CAN YOU TEACH SOMEONE WITH NO BAKING EXPERIENCE? 
Yes, it is more advantageous to have people with well-rounded business experience, than to have only baking experience.  

Q. CAN MY SPOUSE COME TO ALL THE TRAINING PROGRAMS. 
Yes, we encourage you to bring one other person, whether it is your spouse, employee, or other individual who is going to be significant in the operations of your bread store.

Location and Site Selection

Q. HOW LARGE SHOULD A TOWN BE FOR A BREAD STORE? 
Towns with 50,000 people or an area with more than 120,000 people within a 5 mile radius, should adequately support a store.

Q. WHAT SHOULD I LOOK FOR IN A LOCATION? 
Typical locations are in shopping centers anchored by an upscale supermarket or high traffic commercial streets. The space should be approximately 1,500 square feet. We will assist you in the location selection by considering population density, traffic patterns and proximity of the proposed site to other bread bakery locations.

Q. DO I GET A PROTECTED TERRITORY? 
Yes, the size of the exclusive territory will vary depending upon the demographics of the particular locations but will contain a minimum population of 50,000 people.

Time Frame

Q. HOW LONG DOES IT TAKE? 
Normally, you will be ready to open for business from 5 to 8 months after signing your franchise agreement, providing that a suitable location is available. 

Practical Requirements

Q. IS IT HARD WORK? 
Yes, lifting, stirring, kneading, cleaning, unloading supplies and being on your feet all day is TOUGH WORK. 

Q. WHAT ARE SOME OF THE PERSONALITY TRAITS AN OWNER SHOULD POSSESS? 
It is important to have good organizational skills, a commitment toward goals, a positive "can do" attitude, independence with an ability to ask for support, and good people skills to foster harmonious employee and customer relations.

Q. WHAT ARE THE STEPS TO STORE OPENING? 
1.   Review initial information kit. 
2.   Complete and return personal profile form. 
3.   Attend discovery day with House of Bread, upon pre-approval. 
4.   Receive Uniform Franchise Offering Circular (UFOC) and franchise agreement for review. 
5.   Franchise awarded upon final approval. 
6.   Secure franchise with signing franchise agreements and initial franchise fee payment. 
7.   Review confidential operational manual.
8.   Secure financing and store location. 
9.   Attend operations training course. 
10. OPEN YOUR HOUSE OF BREAD BAKERY!

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