Paris Baguette Franchise Costs, Fees & FDD

Year Business Began: 1986

Franchising Since: 1988

U.S. Headquarters: Moonachie, New Jersey

Country of Origin: South Korea

Estimated Number of Units: 4,000

Franchise Description: The franchisor is Paris Baguette Family Inc. The franchise is for the establishment and operation of a Paris Baguette store that offers a variety of French-inspired high-quality breads, pastries, cakes, and other desserts, along with handcrafted sandwiches, soups, salads, hot and cold beverages, and other products.
Training Overview: Before the date the cafe opens for business to the public, the operating principal, café manager (if applicable) and eight to ten food production employees, must have attended and satisfactorily completed the initial training program. Classroom training occurs at the franchisor’s Moonachie, New Jersey, Santa Clara or Costa Mesa, California training Centers, and/or online. On-the-job training occurs at the café to-be opened or the franchisor’s training locations in the United States that the franchisor designates during the term. Currently, training consists of approximately 240 total hours of instruction in each of the following areas: operator/managers, bakers, and cake decorators. The franchisor may conduct seminars or conventions from time-to-time for the benefit of all franchisees whose attendance may or may not be mandatory.

Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. The franchisor may designate a protected geographic area in the Franchise Agreement. Subject to the franchisor’s reserved rights, if franchisees are in compliance with the Franchise Agreement and any other agreement they have with the franchisor or its affiliates, the franchisor and its affiliates will not establish or authorize anyone except the franchisee to establish a Paris Baguette store in the protected area during the term of the Franchise Agreement, other than in any reserved area (as defined in the FDD). The actual size and shape of the protected area will be determined, in the franchisor’s sole discretion, based on several factors, including, without limitation, traffic patterns, population density, income level and the number of households and businesses in the area. Depending on the circumstances, in some cases, the Paris Baguette store will not receive a protected area.

Obligations and Restrictions: When franchisees sign the Franchise Agreements, they must designate an individual to serve as the “operating principal.” The operating principal must meet the franchisor’s qualifications and must be approved by the franchisor. The operating principal must devote reasonable and adequate time supervising operations under the Franchise Agreements. He or she must satisfy the training requirements and the franchisor’s other standards. All products and services franchisees use or sell at the store must conform to the franchisor’s system standards. Franchisees must offer and sell all products and services the franchisor requires.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the opening date. Two additional consecutive terms of five years each are available if requirements are met.

Financial Assistance: Neither the franchisor nor any of its agents or affiliates offer any direct or indirect financing to franchisees or guarantee any note, lease or obligation for franchisees.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$50,000
Real Estate or Advance Rent and Security Deposit and Other Prepaid Expenses and Costs	$10,000	$90,000
Building Costs/Leasehold Improvements	$325,000	$1,000,000
Equipment and Fixtures	$167,956	$315,000
Signs	$7,500	$25,000
Smallwares	$25,000	$30,000
Point of Sale System, Software and Surveillance Equipment	$8,000	$14,500
Opening Inventory	$40,000	$60,000
Grand Opening Promotion	$12,500	$12,500
Licenses, Permits, Fees and Deposits	$4,510	$18,710
Miscellaneous Opening Expenses	$11,034	$16,000
Insurance	$3,405	$4,890
Attorneys’ Fees and Business Consultants	$6,535	$12,500
Travel and Living Expenses While Training	$20,000	$65,000
Cost of Goods During Training	$4,000	$4,000
Test Fit Drawings and Survey	$2,000	$7,000
Additional Funds for First 3 Months of Operation	$30,000	$100,000
ESTIMATED TOTAL	$727,440	$1,825,100

 
Other Fees

Type of Fee	Amount
Royalty Fee(s)	5% of weekly gross sales.
Marketing Fund Fee	Currently 2% of weekly gross sales.
Local Marketing Requirement	Currently 1% of gross sales.
Additional Site Evaluation Fee	The franchisor’s reasonable costs and expenses incurred, including travel, lodging and out-of-pocket expenses.
Software Costs	The then-current fee (currently $250 - $500).
Technology Fee	Currently not collected.
Late Fees	Lesser of (i) 18% per year or (ii) the maximum lawful rate.
Insufficient Funds Fee	The then-current fee (currently $100 per occurrence).
Additional Training & Support Fee	Currently, the fee is $300 per day per trainer (maximum 8 hours per day), plus reimbursement of reasonable costs of travel, lodging, and other out-of-pocket expenses for the franchisor’s team member(s) providing training.
Remedial Training Fee	The then-current fee plus all costs and expenses.
Conference Fee	The then-current fee.
Transfer Fee	$40,000 flat fee per transfer. Franchisees must also pay the franchisor’s costs and expenses associated with the transfer including training costs, legal and accounting fees.
Securities Offering Fee	Currently $3,000 plus the franchisor’s reasonable costs and expenses associated with the reviewing the proposed offering documents.
Renewal Fee	50% of the then-current initial franchise fee.
Relocation Fee	25% of the then-current initial franchise fee plus the franchisor’s costs and expenses associated with the relocation.
Management Fee	Currently 10% of weekly gross sales subject to a minimum of $3,000, plus expenses.
Indemnification	Varies per loss.
Audit Fee	Cost of audit (including legal and accounting fees) and understated amounts plus interest.
Insurance Fee	The franchisor’s actual costs and expenses.
Enforcement Costs	Will vary.
Reimbursement of Costs and Expenses	Will vary.
Liquidated Damages	If the franchisor terminates the Franchise Agreement for cause, or if franchisees terminate it without cause, franchisees agree to pay the franchisor liquidated damages equal to the monthly average royalty fees owed to the franchisor during the 12 months of operation preceding the effective date of termination multiplied by (a) 24 (being the number of months in two full years) or (b) the number of months remaining in the term of the Franchise Agreement had it not been terminated, whichever is less.
Ingredients and Branded Supplies	Will vary.
Equipment	Will vary.
Supplier Evaluation	The franchisor’s costs.
Compliance Audit	The then-current fee (currently $250 plus the expenses incurred by the franchisor’s personnel to conduct the reinspection).

The above information has been compiled from the FDD of Paris Baguette. Year of FDD: 2025.
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