Breadsmith

Hearth-baked breads

Background

Founded: 1993 Franchising since: 1993
While studying in Norway, college student Dan Sterling got his first taste of European bread. Sterling returned to the United States and graduated from Harvard Business School before starting his own company. But he never lost his love of bread, and after volunteering to help a local bakery with its accounting, he decided to launch a bakery of his own. He opened the first Breadsmith location in 1993, and the company began franchising in 1994.

409 E. Silver Spring Dr.
Whitefish Bay, Wisconsin 53217

Phone:
(414)962-1965

Franchisee Association
Breadsmith Franchise Advisory Council

Franchisor is a privately-held company with 7 employee(s)

Franchise Growth

Year	U.S. Franchises	Canadian Franchises	Foreign Franchises	Company Owned
2007	31	0	0	0
2006	30	0	0	1
2005	33	0	0	1

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, United states, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming

Special Programs
Breadsmith requires its franchisees to conduct 4 in-store fund-raisers each year. Stores support various local organizations such as Little League teams and scout troops. At the end of each day, leftover bread is donated to homeless shelters.

Costs and Fees

Total investment: $217.5K-416K
Franchise fee: $30K

Ongoing royalty fee: 7-5%
Term of agreement: 15 years, renewable

Type of Financing Available

	In-House	Third Party
Franchise Fee	No	No
Startup Costs	No	No
Equipment	No	No
Inventory	No	No
Accounts Receivable	No	No
Payroll	No	No

Qualifications
Net worth requirement: $500K
Cash liquidity requirement: $100K
Business Experience:

General business experience
Marketing skills helpful but not necessary

Operations

10% of all franchisees own more than one unit
Number of employees needed to run franchised unit: 20
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)