Paris Baguette Franchise Cost Fee Profit Margin

The South Korean bakery brand Paris Baguette was established in 1988 by Cho Young-Kil and Choi Jae-Yeol. Because French baguettes are so well-liked, the name Paris Croissant was changed to Paris Baguette in 1993. Since then, the brand has rapidly expanded, becoming one of South Korea’s most recognisable bakery companies. French-style bread, pastries, cakes, sandwiches, and beverages are Paris Baguette’s specialty. With more than 3,500 locations as of 2021, it is the largest chain of its sort in the nation. In addition, Paris Baguette has grown internationally, with franchise in the United States, China, Vietnam, and Japan.

Along with conventional pastries and bread like croissants and baguettes, Paris Baguette also provides a range of healthy options including whole wheat bread and low-calorie cakes. According to IBISWorld, the market size of the Bakery Cafes industry in the US has remained steady between 2018 and 2023 i.e. 0.8%.

 

 

What is the Paris Baguette?

A premium neighborhood bakery café, Paris Baguette serves a wide variety of high-quality cakes, sandwiches, coffee, pastries, bread, salads, and beverages. Currently, the brand has five locations in Paris and two in London. Over 120 franchised outlets of Paris Baguette can be found throughout the US. 35 years of franchising expertise in 12 nations are reflected in its advantages.  The company makes sure that the franchise owners have the resources and assistance they need to manage a successful business. The team provides support for each crucial step of opening a bakery café, including assistance with site selection, store design and construction, training, operations support, product development, logistics, distribution, advertising, marketing advice, and more.

 

Is Paris Baguette a Franchise Opportunity?

Yes, Paris Baguette is a franchising opportunity. You will profit as its franchisee from a successful franchise model and an accomplished leadership group. It is a thrilling brand to own and run, and franchisees are given a special location to transform into their own.

Facts That Nobody Told You About Paris Baguette

• Founded in 1988 in Seoul, South Korea by a Korean baker named Hur Young-in, Paris Baguette is a popular French bakery.
• There are more than 4,000 locations for Paris Baguette around the world, including ones in the United States, China, Singapore, Vietnam, and France.
• The name of the bakery, “Paris Baguette,” conveys its focus on baguettes and croissants, two types of French-style bread and pastries.
• The “green Tea Tiramisu,” which is made of green tea sponge cake, mascarpone cheese, and loose-leaf tea powder, is known as Paris Baguette’s signature item.
• Paris Baguette offers beverages in addition to its baked goods, including espresso, tea, and other brews.
• The bakery has won numerous accolades, including the 2019 Asia Food Innovation Awards’ “Satisfactory Bakery Cafe” award.

 

Paris Baguette Franchise Review and Information
Industry Type	Food Franchise Opportunities
Sub Category	Bakery Franchises
Year Established	1988
Company Name	SPC Group
Founder/Management Head	Hur young-in
Franchising Started	1988
Employees at Company H.O	83
Franchise Expansion Plan	Worldwide
Number of Units	4000
Number of Franchise Units	3900
Social Media Handles	Facebook
	Twitter
	Youtube
	Instagram
Company Office location	137 W Commercial Ave, Moonachie, NJ 07074, United States

 

Paris Baguette Franchise Requirements

To open a franchise, you need to have a net worth of $1.5 million and $500k in liquid assets, as well as a dedication to excellence, a love of baking, flexibility, and open-mindedness, as well as prior expertise in the food services, business, and marketing.

How much does a Paris Baguette franchise cost

The franchise fee for Paris Baguette is $50,000, and their investment cost ranges from $378,270 to $1,638,554.

How much does it cost to franchise a Paris Baguette in the United States?

To set up a franchise of Paris Baguette in the United States,  a net worth of $1.5 million and $500k in liquid assets are required.

Paris Baguette Franchise Price and Costs
Paris Baguette Franchise Fee	$50,000
Paris Baguette Franchise Cost	$378,270-$1,638,554
Royalty Fee	5%
Advertising Fee	2%
Term of Agreement	10 Years
Is franchise term renewable?	Yes
Renewable Franchise Fees	50 % of franchise fee

 

How much do Paris Baguette franchise owners make?

The profitability of the Paris Baguette franchise is influenced by a number of factors. Profit varies according to the amount invested, costs, and product demand. Since Paris Baguette already enjoys a solid reputation in the marketplace, it stands to reason that income will likely increase. 

 

What is the Paris Baguette franchise profit?

I will estimate Paris Baguette’s franchise profit and years to recoup the investment (ROI) with margin from 12.5% to 18%.This profit margin is as per bakery cafe retail business standards.

 

AUV	Estimated Annual Profit (12.5%)	Estimated Annual Profit (15%)	Estimated Annual Profit (18%)
$ 2,249,864	$281,233	$337,479	$ 404,975
Recoup mid-point $ 1,008,412	3.5 years	2.9  years	2.4 years

The estimated Paris Baguette franchise profit (margin 12.5 to 18%) is in the range of $281,233 to $404,975   and it will take  2  to  4  years to recoup the investment. 

According to industry standards, getting a return on the franchise investment will not take a very long time.

Paris Baguette Training to Franchises

The operating principal, store manager (if applicable), and six people who work in food production have to  attend and successfully complete the initial training programme before the store opens to the general public. At the franchisor’s training facility in Moonachie, New Jersey, or online, there is classroom instruction available.

Throughout the term, on-the-job training takes place at the franchisor’s designated training facilities in the United States. Currently, training entails around 313 hours of classroom and on-the-job instruction for a minimum of two operators/managers, around 311 hours for a minimum of three bakers, and around 311 hours for a minimum of three cake decorators. 

 

Paris Baguette Operations to Franchises

Franchisees are required to name an individual to act as the “operating principal” when they sign the Franchise Agreements. The operating principal must be qualified by the franchisor and have their approval. The operating principal is required to commit a fair amount of time to monitoring franchise agreements-related operations.

He or she must meet the franchisor’s other standards as well as the training requirements. The franchisor’s system requirements must be followed by all goods and services that franchisees utilize or market at the location. Franchisees are required to provide and market all the goods and services the franchisor demands.

How is Paris Baguette Territory Granted to Franchises

Franchisees won’t be given a territory that is all their own. Franchisees could encounter rival franchisees, stores owned by the franchisor, alternative means of distribution, or rival brands that the franchisor manages. 

During the term of the agreement, the franchisor and its affiliates will not establish or permit anyone other than the franchisee to establish a Paris Baguette store in the protected area, with the exception of any reserved area (as defined in the FDD). This is provided that franchisees are in compliance with the terms of the Franchise Agreement and any other agreements they have with the franchisor or its affiliates. 

In the franchisor’s exclusive discretion, the protected area’s precise dimensions and shape will be decided by a number of variables, including but not limited to traffic patterns and population density.

What is the Franchise Term of Agreement and Renewal?

The initial period of the franchise is 10 years from the start date. If the conditions are met, there are two further consecutive terms of five years each.

Does Paris Baguette provide Financial Assistance to Franchises?

No direct or indirect financing is provided to franchisees by the franchisor or any of its agents or affiliates, and no franchisee note, lease, or obligation is guaranteed by the franchisor or any of these parties.

Pros & Cons of owning a Paris Baguette

Pros of owning a Paris Baguette 

• A vast variety of products offered by Paris Baguette, including bread, pastries, sweets, and sandwiches, may appeal to a larger audience and open up new revenue streams.

• The franchisor can help you select a suitable location on your property that will help you maximize foot traffic and sales.

• As a franchisee of Paris Baguette, you may have the opportunity to grow your business by opening other restaurants in your neighborhood or in other U.S. locations.

• Being a member of a larger franchisee network may give you access to better prices on equipment, supplies, and other resources.

Cons of Owning a Paris Baguette

• The bakery and café sector can be quite competitive, and you might be forced to compete with independent companies and different setup manufacturers in your area.

• Additionally, the franchisor might have specific performance benchmarks that you must fulfill, if you don’t, you could face penalties or even have your franchise agreement terminated.

• Additionally, the franchisor may have specific restrictions for the location of your store, which could limit your options and may not be in line with your preferences or ideal location.

• You may be expected to contribute to the franchisor’s marketing and advertising efforts, and you may have some restrictions on your ability to advertise your company using your own methods or channels.

What is Paris Baguette franchise reviews

The quality of the food and products, the outstanding surroundings and décor of the stores, and the level of guidance offered by the franchisor are frequently mentioned in positive reviews of the Paris Baguette franchises.

Many customers praise Paris Baguette’s wide variety of freshly baked bread, pastries, sandwiches, and other delicacies. Along with the cleanliness and welcoming atmosphere of the shops, people frequently also compliment the quality and taste of the goods.

Franchisees who have had positive experiences frequently point to the franchisor’s thorough training and continuous support, as well as its strong branding and marketing initiatives.

Paris Baguette Franchise Rankings

Paris Baguette has repeatedly appeared in the Entrepreneur’s Franchise 500 list, which rates franchises according to a range of criteria, including financial soundness, stability, room for expansion, and franchisee support.

Additionally, it has received a ranking as one of the top competitors in Franchise Times’ top 200, which essentially takes into account variables like system-wide sales, the number of sites, and growth potential.

Franchise Deck Analysis and Overview

The Paris Baguette franchise’s strong brand image and product popularity are two of its key advantages. The chain offers a wide selection of bread, pastries, cakes, sandwiches, and coffee beverages, all of which are created with high-quality ingredients and are consistently organized and clean. As a result, the company has developed a devoted customer base and established itself as a leader in the bakery and café industry.

The extensive training and support provided to franchisees is another strength of the Paris Baguette chain. The franchisor offers a variety of training programmes, including classroom and hands-on instruction, along with ongoing support for operations, marketing, and product improvement. 

Potential Risks to consider before investing in a Paris Baguette franchising business

• Paris Baguette has to compete with a variety of established brands and independent businesses in the highly competitive bakery and café sector. Franchisees may also struggle to keep customers, especially in markets with a high concentration of established competitors.
• The location of the business has a significant impact on the success of a Paris Baguette. Franchisees need to carefully assess potential locations to make sure there will be enough foot traffic and demand for the products. They also need to adhere to the complex and time-consuming local building and zoning regulations.
• It takes a lot of work and effort to run a Paris Baguette business. 

 

Is the Paris Baguette Franchise Profit Worth the Cost?

Profitability of a Paris Baguette will depend on the franchisee’s ability to properly run the business, control costs, and draw in and keep consumers. Franchisees who are able to run the Paris Baguette business model successfully and establish a strong presence in their local market may be able to produce enormous income that justifies the franchise fee. On the subject of business ownership, there are no guarantees, and individual results may differ.

Paris Baguette Franchise Success and Failure Rate

The below table will highlight the Paris Baguette success and failure rate for the last 3 years. This will supplement your decision-making process.

 

Year	Format	Start	End	Change
2019	Franchise Owned	26	38	+12
	Company Owned	49	44	-5
2020	Franchise Owned	38	52	+14
	Company Owned	44	34	-10
2021	Franchise Owned	52	68	+16
	Company Owned	34	26	-8

 

Competition Analysis of Paris Baguette Franchises

 

Paris Baguette	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Paris Baguette	$378,270-$1,638,554	$50,000	5%+2%	15%	2-4 years	4.2/5.0
FatBurger Franchise	$462,000-$770,000	$50,000	6%+4%	10-15%		4.0/5.0
Sonic Franchise	$1,242,200 – $3,537,700	$45,000	5%3.25%	13%	14.5 years	3.5/5.0
Burger King Franchise	$1,790,800 – $4,194,700	$50,000	4.5% 4%	16%	8 – 12 years	3.8/5.0
Wendy’s franchise	$2-$3.5 million	$40,000	4%	$ 330490 – $ 440653	8 – 12 Years	3.9/5.0
Whataburger franchise	$0.5 to $1.5  million	$59,500	8%	$94,000 – $122,600	6 – 9 years	3.9/5.0

The Franchise Deck rating for the Paris Baguette’s  is 4.2/5.0.

Conclusion : Should You Buy theParis Baguette franchise ?

The Paris Baguette franchise is an international brand that sells baguettes, croissants, cakes in bread, and sweets. Company’s headquarters are in Seoul, South Korea, despite the French nickname. As of the start of 2021, they had 94 stores in the USA. Having retained earnings of $819,099 in 2021 as opposed to $2.2 million in losses in 2020, Paris Baguette is a successful venture for the franchisor. Their finances have yet to be demonstrated, though. People have the chance to join a company with significant gross yearly sales and a powerful worldwide franchisor by joining the brand.

 

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15. Frutta Bowl Franchise
16. Voodoo Donuts franchise
17. Duck Donuts Franchise

 

Frequently Asked Questions (FAQs)

• Is the Paris Baguette franchise profitable?

Keeping in mind its retained earnings of $819,099 in 2021, you can consider it to be highly profitable for you.

• Can you make money owning a Paris Baguette?

Yes, definitely we can make money owning a Paris Baguette.

• Is a Paris Baguette a franchise?

Yes, Paris Baguette has offered franchising opportunities since 1988.

• How much is a Paris Baguette franchise?

The fee for Paris Baguette is $50,000, and their investment cost ranges from $378,270 to $1,638,554.

• How do Paris Baguette franchises make money?

Paris Baguette franchises make money by selling a wide variety of high-quality cakes, sandwiches, coffee, pastries, bread, salads, and beverages.