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Great Harvest Bread Co. Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Great Harvest Bread Co. Franchise?
To open a Great Harvest Bread Co. franchise, you will need to prepare for an initial investment that ranges from $46,152 to $984,154. This includes a franchise fee of $35,000. Additionally, potential franchisees must have cash available between $168,262 and $984,154 and a net worth of $500,000 to $1,000,000. It’s crucial to assess your financial readiness before diving into this opportunity.
What Are the Ongoing Fees Associated with a Great Harvest Bread Co. Franchise?
Franchisees of Great Harvest Bread Co. are required to pay ongoing fees that include a royalty fee of 5% of gross sales and a marketing fee of 2.5%. These fees are essential for maintaining brand standards and supporting marketing efforts. Understanding these costs will help you plan your budget effectively and ensure the sustainability of your franchise operation.
What Is the Financial Performance of a Great Harvest Bread Co. Franchise?
The average annual revenue per unit for a Great Harvest Bread Co. franchise is approximately $907,502, with a median revenue of $861,185. Revenue can vary significantly, with the lowest annual revenue reported at $266,746 and the highest reaching $2,633,768. This financial performance indicates the potential profitability of the franchise, but it's essential to consider location and operational efficiency when projecting your own revenue.
How Quickly Can You Expect to Break Even with a Great Harvest Bread Co. Franchise?
Franchisees can anticipate breaking even within about 12 months of opening their Great Harvest Bread Co. location. The investment payback period is approximately 15 months, making it a relatively quick return on investment compared to many other franchise opportunities. This timeframe can be appealing for entrepreneurs looking to see a financial return sooner rather than later.
Great Harvest Bread Co. Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
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Great Harvest Bread Co. Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 169 | 162 | 156 |
| Net Change YoY | -7 | -6 | |
| Franchised Units | 168 | 161 | 155 |
| Net Change YoY | -7 | -6 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
Great Harvest Bread Co. offers a varied investment landscape for potential franchisees, with initial investment costs ranging from $46,152 to $984,154. The franchise fee is set at $35,000, and franchisees must be prepared for ongoing royalty and marketing fees of 5% and 2.5%, respectively. Aspiring owners should have cash reserves between $168,262 and $984,154, alongside a net worth requirement of $500,000 to $1,000,000 to ensure financial stability and operational success.
Financial Performance
Franchisees of Great Harvest Bread Co. can expect an average annual revenue of $907,502 per unit, with a median revenue of $861,185. Revenue figures vary significantly, with the lowest annual revenue at $266,746 and the highest reaching $2,633,768. This financial potential underscores the brand's strong market presence and the opportunity for franchisees to achieve substantial earnings.
Breakeven and Payback
New franchisees typically experience a breakeven period of around 12 months, indicating a relatively quick path to profitability. The investment payback period averages 15 months, allowing owners to recoup their initial investment in a timely manner. This efficient return on investment is appealing for both first-time and seasoned franchisees looking to optimize their financial performance.
Operational Structure
As of 2023, Great Harvest Bread Co. operates a total of 156 units, with 155 being franchised and one corporate unit. The franchise has shown a slight decline in total units over recent years, from 169 in 2021 to 156 in 2023. This trend may reflect broader market dynamics or strategic decisions by the company, warranting careful consideration by prospective franchisees.
Cost Breakdown
The average cost of goods sold (COGS) for Great Harvest Bread Co. is approximately $768,438, which constitutes about 84.66% of total revenue. Operating expenses average $900,608 annually, with fixed costs, including rent and utilities, accounting for $132,168. Understanding these costs is crucial for franchisees to effectively manage their financials and maximize profitability.
Franchise Support
Great Harvest Bread Co. provides robust support for its franchisees, offering training, marketing assistance, and operational guidance. This support is designed to help franchise owners navigate the complexities of running a bakery business, ensuring they have the tools and resources necessary to thrive in a competitive market. The emphasis on franchisee success is a cornerstone of the brand's operational philosophy.
Frequently Asked Questions
The initial investment for a Great Harvest Bread Co. franchise ranges from $46,152 to $984,154, including a franchise fee of $35,000.