Panera Bread Bakery-Cafe Franchise Costs, Fees & FDD

Year Business Began: 1981

Franchising Since: 1981

Headquarters: Fenton, Missouri

Estimated Number of Units: 2,200

Franchise Description: Panera, LLC is the franchisor. The franchisor’s ultimate parent company is JAB Holding Company. The franchise offered is for a Panera Bread Bakery-Café which will specialize in the retail sale of fresh bakery goods, sandwiches, soups, salads, custom roasted coffees and other café beverages, other menu items and merchandise related to the Panera Bread concept, as the franchisor may authorize from time to time.
Training Overview: Before opening the Panera Bread Bakery-Cafe, the operating partner and all bakery-cafe general managers, assistant general managers, and team managers who have not previously graduated from certified training programs must successfully complete their appropriate training program. The operating partner must complete Retail Training, which includes all applicable positions and consists of hands-on training and may include classroom training, covering all phases of bakery-cafe operations. Certified Manager Program (CMP) is a 90 to 100 day program taught by a general manager who has been certified to train. Current certification status from an ANSI Accredited Program, including ServSafe from National Restaurant Association, National Registry from Environmental Health Testing, Prometrics, 360 Training or equivalent, or a Panera-approved food safety course within the operating state, if offered by the state, is required for all active managers who run shifts. In addition to the training program, the franchisor may require franchisees and/or their operating partner and other personnel for the bakery-cafe to attend and successfully complete periodic or additional training programs.

Territory Granted: The Franchise Agreement grants to franchisees the right to own and operate a Panera Bread Bakery-Cafe at a specific location. Except for limited exceptions, the franchisor will not operate a Panera Bread Bakery-Cafe or grant to a third party the right to operate a Panera Bread Bakery-Cafe within a geographic area (the protected area) consisting of a one-mile radius from the center of the Premises, unless the parties have identified a different protected area. It is anticipated that a protected area generally will be used in connection with Bakery-Cafes located in geographical areas of two types, although it possibly could be used in other circumstances as well, such as non-traditional locations. The first type is defined as an “Urban Residential area” with residential population greater than 50,000 people within a two-mile radius of a site; the second type is a “City Center area” which is defined as having daytime population of greater than 20,000 people within a 1/4-mile radius of a site. If both of these types apply to a location, then a “City Center area” criteria will be used for the protected area.

Obligations and Restrictions: Franchisees must designate in the Franchise Agreement as the “operating partner” an individual approved by the franchisor who must: (a) own and control, or have the right to own and control (subject to conditions reasonably acceptable to the franchisor), not less than 10% of the equity; (b) have the authority to bind the franchisee regarding all communications with the franchisor and operational decisions with respect to the Bakery-Cafe; and (c) have completed the training program to the franchisor’s satisfaction. The operating partner: (a) shall exert his/her full-time and best efforts to the development and operation of the Panera Bread Bakery-Cafe and all other Panera Bread Bakery-Cafes the franchisee owns; and (b) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise may conflict with the obligations under the Franchise Agreement. Franchisees must sell all food, beverage, other products, merchandise and services that the franchisor determines from time to time to be appropriate for the Panera Bread Bakery-Cafe. A franchisee’s Panera Bread Bakery-Cafe will not be permitted to offer any products or services (including promotional items) the franchisor has not authorized for Panera Bread Bakery-Cafes without prior written approval.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years. An initial franchise may be granted a renewal of franchise under terms of then-current Franchise Agreement. The new agreement may have terms and conditions materially different from the original contract. A successor franchise has no renewal rights.

Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees. The franchisor does not guarantee a franchisee’s notes, leases or other obligations.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$35,000	$35,000
Real Property	Varies
Leasehold Improvements	$524,052	$2,899,506
Equipment	$383,315	$506,706
Optional Technology Systems	$100,000	$132,000
Fixtures	$41,471	$124,254
Furniture	$17,471	$94,617
Consultant Fees	$47,000	$328,000
Supplies & Inventory	$21,500	$29,500
Smallwares	$9,600	$48,000
Signage	$20,891	$101,856
Additional Funds (3 months)	$66,505	$351,885
ESTIMATED TOTAL (excluding real estate and related costs, and landlord allowances)	$1,266,805	$4,651,324

 
Other Fees

Type of Fee	Amount
Royalty	5% of net sales.
National Advertising Fund	3.5% of net sales
Local Advertising Funds	2% of net sales
Marketing Administration Fee	0.4% of net sales
Advertising Association	Determined by advertising association.
Miscellaneous Administrative Fees	To be reasonably determined by the franchisor from time to time.
Food Products	Prices are established by approved suppliers from time to time.
Quality Control Program	Varies.
Re-Inspection Fee	$3,500
Interest on Late Payments	2% over prime rate.
Fee for Insufficient Funds in Bank Account	Currently $30 (bank fee plus administrative fee).
Fees to Evaluate and Approve Alternative Suppliers	The franchisor’s reasonable costs and expenses, which currently are expected to range between $2,500 and $7,500, although costs could greatly exceed those amounts depending on the product and the proposed alternative supplier.
Audit	Cost of audit, which is expected to range between $30,000 and $70,000 assuming the franchisee has maintained adequate books and records.
Site Selection Costs	The franchisor’s reasonable expenses, which are expected to range between $1,500 and $4,000.
Insurance	Will vary under circumstances.
Maintenance Costs	Will vary under circumstances.
Attorneys’ Fees and Other Costs	Will vary under circumstances.
Indemnification	Will vary under circumstances.
Transfer	$7,500, plus costs.
Renewal	50% of the then current initial franchise fee.
Optional Technology Products & Services	Varies.

The above information has been compiled from the FDD of Panera Bread Bakery-Cafe. Year of FDD: 2025.
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