How much does a Bakers Delight franchise cost?
Initial costs
The initial cost to establish a new Bakers Delight bakery is between $450,000 and $550,000 on average, depending on the size and location of the proposed new franchise.
Alternatively, you have the option of purchasing an existing Bakers Delight bakery. The cost to purchase an existing bakery will generally be higher than starting a new bakery and could cost up to $1.2 million. The cost will always depend on the location, the size and the past financial performance of the franchise as well as on the length of the lease and the franchise agreement term.
In addition to the initial set-up and establishment costs, you are liable to pay $50,000 plus GST to secure a 10-year franchise agreement. You are also expected to have between $10,000 and $15,000 of unencumbered cash as working capital.
Ongoing costs
You will also need to pay ongoing weekly royalties of 6.5% plus GST of net sales, as well as a 2% advertising contribution fee per week.
This is in addition to the standard costs of running a retail business, such as rent, wages, insurance and the cost of goods sold.