Start a Kolache Factory Franchise in 2024

2024 Franchise 500 Rank: #371 Ranked #459 last year

Initial investment: $642K - $937K

Units as of 2023: 60 5.3% over 3 years

Kolache Factory was founded in Houston, Texas, in 1981 by co-founders Jerri and John Banks after they recognized the need for fresh, high-quality breakfast. The company is committed to food innovation, craftsmanship, and authenticity by serving fresh kolaches and other specialty products. The brand sources gourmet coffees and diverse traditional pastries such as strudel niks, croissants, and cinnamon rolls.

At first, its co-founders struggled to convince customers to try their fresh, high-quality kolaches. Some people in Houston had never tasted this Eastern European treat before. After implementing various strategies for product awareness, however, it wasn't long before kolaches were in high demand for breakfasts, afternoon snacks, and business meetings. Today, the company has more than 55 units across the United States. Of those 55, over 25 are franchised locations.

Why You May Want to Start a Kolache Factory Franchise

As a Kolache Factory franchisee, you'll enjoy the independence of being your own boss, yet benefit from the company's support. The company's multi-week intensive training program may help you stay well-informed on a wide array of subjects, including food preparation, store operations, customer service, quality control, inventory control, marketing, and cash register systems.

Kolache Factory is a unique company, just like the products it serves, and is passionate about providing its customers with innovative products. The persistent quest for unique experiences using different choices, flavors, and ingredients may be what the factory is all about!

What Might Make a Kolache Factory Franchise a Good Choice?

To some, breakfast is king, commanding respect as one of the strongest-performing meals in the food industry. Pair this with a restaurant chain, and you may be in business! Stocked with more than 25 different kolache varieties, the company strives to produce high-end products that are tasty and affordable for every consumer.

Some kolaches cost less than a few dollars each, with their more "expensive" kolache equaling out to less than $5.00. This price range may make it easy for someone to pick up a dozen or more for a meeting, breakfast at home, or just to enjoy themselves.

To be part of the Kolache Factory team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for the existence of ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

How to Open a Kolache Factory Franchise

The ideal Kolache Factory candidate is passionate about owning a community-oriented business. Having restaurant or bakery experience will work in your favor, but it isn't always necessary. At the very least, however, you'll need to be a strong manager with significant business experience and strong social skills. With Kolache Factory, you have to be involved in daily operations; absentee ownership is not allowed.

Location may or may not be an issue for you, depending on where you're looking to franchise. The Kolache Factory is currently only targeting about a dozen states for franchise opportunities. You may need an area developer agreement for locations outside of this range.

The Franchise Disclosure Document can provide more in-depth information about its opportunities and ownership requirements. This information can help you weigh the pros and cons of moving forward with your own Kolache Factory franchise.

Company Overview

About Kolache Factory

Industry	Food
Related Categories	Miscellaneous Baked Goods, Baked Goods, Sandwiches, Miscellaneous Quick-Service Restaurants, Breakfast/Brunch Restaurants
Founded	1982
Parent Company	Kolache Factory
Leadership	Dawn Nielsen, COO
Corporate Address	23240 Westheimer Pkwy., #A Katy, TX 77494
Social	Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest

Business Overview

Franchising Since	2000 (24 years)
# of employees at HQ	16
Where seeking	This company is offering new franchises in the following US states: Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, West Virginia, Wyoming
# of Units	60 (as of 2023)

Information for Franchisees

Here's what you need to know if you're interested in opening a Kolache Factory franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$44,900
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$641,900 - $937,400
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$150,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	6%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	3%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Kolache Factory has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	220 hours
Classroom Training	7 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	6-8
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes