Business Description

Award-winning, European, hearth-bread bakery, featuring fresh-from-scratch crusty breads, scones, muffins, gourmet jams and oils. Open kitchen concept reveals a six-ton, stone hearth oven imported from Europe used to bake the hand-crafted loaves each morning. BREADSMITH has been ranked by Bon Appetit, Best in 11 cities across the country.

Franchisor Background

Year Established:  1993

Franchising Since:  1994

Operating Units:
Franchised Units:	35	97.2%
Company-Owned Units:	1	2.8%
Total Operating Units:	36	100.0%
Geographic Distribution: U.S.: 36 100% In 10 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 36 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. Illinois	7
2. Michigan	10

Registered in Following Registration States: California, Florida, Illinois, Indiana, Michigan, Minnesota, New York, Oregon, South Dakota, Virginia, Washington, Wisconsin

Financial Requirements

Investment:
Minimum Net Worth:	$500K
Cash Investment:	$100-250K
Total Investment:	$200-400K
Average Total Investment:	$300K
Fees:
Initial Franchise Fee:	$30K
Average Franchise Fee:	$30K
On-Going Royalty:	7/6/5%
Average Royalty:	7%
Advertising Fee:	0%

Average Number of Employees: 6 Full-time, 12 Part-time

Space Needs (in square footage): 1,800

Preferred Sites: Free-standing Building, Storefront, Strip Center

Other Sites:

Encourage Conversions? Not Applicable

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	4
General Business Experience:	4
Specific Industry Experience:	2
Formal Education:	4
Psychological Profile:	4
Personal Interview(s):	5
Terms of Contract
Term of Initial Contract:	15 Year(s)
Term of Renewal Period:	15 Year(s)
Passive Ownership:	Not Allowed
Area Development Agreements?	Yes, for 1 Year(s)
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	10
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Direct
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	Not Applicable
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Included in Fees
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Included in Fees
800 Telephone Hotline:	Included in Fees
Training:
1. Corporate Store	4 Weeks
2. Franchisee Store	1 Week
Expansion Plans
Projected New Units Over Next 12 months: 5 U.S.: Yes, All United States Canada: Yes, All Canada Overseas: No	Request Franchisor Info   Submit an online form to receive information from Breadsmith.