Atlanta Bread Company Franchise Review

Atlanta Bread Company Franchise Review

Atlanta Bread is a chain of bakery cafe’s founded in the Atlanta suburb of Sandy Springs, Georgia in 1993 by Jerry and Basil Couvaras. This company has been franchising since 1995. By the end of 2008, it has 110 locations in 24 states. Its headquarters are located in Smyrna, Georgia.

The bakery cafe concept serves a variety of salads, sandwiches, soups, gourmet coffees, breakfast sandwiches, bagels, pastries, breads and desserts. Pasta, Pizza and breakfast selections such as French toasts and omelettes are also featured by selected locations. The company has the most astonishing food concept and persons who are interested in its franchising business option, are provided with complete support from training to real estate assistance. Offers for franchising are made only through circular offering.

The Atlanta Bread Company has 2 company-owned units and 167 franchised units. All the 169 Atlanta Bread Company Bakery units are spread across the United States and till now none of its units are in Canadian provinces or in any other foreign country. In addition to this there are still no units operational in South Carolina and North Carolina.

The company is registered in following States: Georgia, Florida, Illinois, Maryland, California, Indiana, Hawaii, North Dakota, Michigan, Rhode Island, Minnesota, Wisconsin, Virginia, Oregon, District of Columbia, Alberta and Washington.

Qualifications for franchisee:

The financial net worth is very significant. It is also important for the franchisee to have his personal interview and psychological profile. Franchisee’s general business experience, industry specific experience and formal education will also be considered.

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10 years is the renewal period and the of the initial franchisee agreement. Passive ownership is permissible; however it is highly discouraged. Franchisees are allowed to expand inside their territory and a one year area development agreement is also in place. Sub-franchising contract or agreement is not available.

Training and support for corporate staff, lease negotiation assistance, site selection assistance and direct financial assistance is offered. Training will be held for 7 weeks in Atlanta. T

There will be no regional, co-op, local or national advertising, specified marketing materials or other marketing support. Ongoing support such as field operation evaluation, central purchasing, initial store opening, field training, regional or national meetings, inventory control and the 800 phone hotline are in place for a fee.

Franchise Cost:

In order to own a franchise of Atlanta Bread Company Bakery Cafe minimum cash investment required is $400, 000.

Total Cash investment required – $650, 000-1MM

Average total investment – $825, 000

Minimum net worth – $1MM

Initial and average franchisee fee – $400, 000

On-going and average royalty – 5%

Advertising fee – 2%

Average number of employees required is 34 for full-time working. Part-time employees are not permitted.

Space needed for the cafe – 4000-4500 sq. meters (preferably a storefront or a free-standing building)

No earning claims are provided and Conversions are not applicable

When looking to start any business it is important, particularly considering today’s market, that you look for specific ways to cut minimize or reduce overhead and risk. Any business is going to have risk, but it is important to have a full understanding of the amount of investment, startup cost and “ROI” (Return on Investment).

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Most people are not aware that 80% of ALL franchise endeavors fail in the first two to five years leaving large debts looming for years thereafter.

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