Paradise Bakery and Café
Date of Incorporation: 1998
Franchising Since: 1998
Headquarters: Delaware
Business and Description: Paradise Bakery and Café Inc. is a Delaware corporation which was originally incorporated in California on February 27, 1976 as Snak Shop. Paradise Bakery and Café Inc. franchises retail businesses that sell freshly baked products, including cookies, muffins, croissants, breads and desserts, gourmet and specialty coffees, as well as sandwiches, soups, salads, beverages and other items.
Franchise Offer: Under a Paradise Bakery & Cafe Franchise Agreement, Paradise Bakery and Café Inc. authorizes you to operate a retail business that sells freshly baked products for an initial franchise fee of $60,000.
Financial Assistance: Paradise Bakery and Café Inc. does not offer any direct or indirect financing nor do they guarantee any lease, note or obligation.
Training and Assistance: Training consists of up to 8 weeks in classroom and 8 weeks on the job and it covers opening and operating the café, administration, management, food preparation etc.
Territory: The size and boundary of the Territory under the Franchise Agreement will extend in a one mile radius from the center of the Bakery & Cafe location. Paradise Bakery and Café Inc. agrees not to own, operate or license any other Paradise Bakery & Cafe utilizing the Paradise name or related trademarks within the territory.
Renewal and Termination: The Length of term for the Franchise Agreement is
10 years with a 5 year renewal if certain conditions are meet. Both parties can only terminate with cause.
Obligations and Restrictions: The franchisee is restricted from soliciting or accepting orders from consumers outside of the territory, including the right to use other channels of distribution such as the Internet, catalog sales, telemarketing or other direct marketing, to make sales outside of the territory. The Franchise Agreement requires that the Franchisee or Operating Partner personally and directly manage the Franchised Business unless it is managed by a full-time manager who meets Paradise Bakery and Café Inc.’s standards for Bakery & Cafe managers. The Franchise Agreement reserves to the Franchisor the right to establish comprehensive standards and requirements governing the goods and services offered for sale by the Franchisee. The Franchisee may offer and sell only those items specifically approved in writing by Paradise Bakery and Café Inc.
Total Number of Company Owned Units for 2007: 32
Total Number of Company Owned Units Opened for 2007: 10
Total Number of Company Owned Units Closed for 2007: 1
Total Number of Franchised Units for 2007: 34
Total Number of Franchised Units Opened for 2007: 13
Total Number of Franchised Units Closed for 2007: 1
Investment Table:
Estimated Initial Investment for Single Unit Franchise (street location):
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Security Deposit on Lease | $425,000 | $550,000 |
| Architecture and Engineering Fees | $20,000 | $50,000 |
| Furnishings, Fixtures, Equipment, Signage and Décor | $450,000 | $550,000 |
| Initial Inventory | $20,000 | $30,000 |
| Business Licenses and Permits | $3,000 | $15,000 |
| Miscellaneous Deposits (i.e. Phone Deposit) | $0 | $2,000 |
| Commissary and Uniforms | $3,000 | $4,000 |
| Insurance | $4,000 | $6,000 |
| Grand Opening Promotional Program | $5,000 | $5,000 |
| Preopening Expenses (Wages, Training Expenses, Travel, Supplies, etc.) | $60,000 |
$100,000 |
| Professional Fees (Legal, Accounting and Consulting) |
$5,000 | $8,000 |
| Working Capital | $20,000 | $40,000 |
| Total | $1,075,000 | $1,440,000 |
Ongoing Costs for Single Unit Franchise (Street location):
| Name of Fee | Amount |
|---|---|
| Royalty |
5% of gross sales |
| Local marketing area Fund Fee |
Not to exceed 1% of gross receipts |
| National Marketing and advertising Fund Fee | Not to exceed 2% of gross receipts |
| Monthly Marketing fee |
Up to $200 per month |
| Miscellaneous Fees and Charges |
Varies |
| Late Payment Charge |
$20 or 2% of delinquent amount, whichever is greater |
| Interest on Late Payments |
5% over the discount rate then in effect at the Federal Reserve Bank |
| Relocation Fee |
$2,500 |
The above information has been taken from the UFOC/FDD of Paradise Bakery and Café Inc.
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