How to buy a Bakers Delight franchise

Established as a single bakery in Melbourne in 1980, Bakers Delight is now the largest Australian-owned bakery franchise, with over 700 bakeries around the world.

Find out how a Bakers Delight franchise works and how to apply as well as compare your finance options below.

How does a Bakers Delight franchise work?

Bakers Delight operates on a franchise model, meaning potential business owners can purchase a bakery from the franchisor or another franchisee. The new owners will then need to manage the business day to day.

You are given extensive training and you'll benefit from the existing Bakers Delight brand awareness and business infrastructure. You will also receive ongoing operational and marketing support in return for paying compulsory franchise fees. You do not need to be a qualified baker to become a franchisee, but you are expected to manage the business on a full-time basis.

How do I apply to become a Bakers Delights franchisee?

To apply to become a Bakers Delight franchisee, there is a step-by-step application process:

1. 1. Enquire through their website. You must submit an application form through the Bakers Delight website. You will need to include the following information:
      • Whether you are an Australian citizen or permanent resident
      • The state and region in which you are interested in buying a Bakers Delight
      • The specific bakery that you are interested in purchasing (bakeries currently for sale are advertised on their website)
      • Your investment range (up to $500,000)
   2. Your application will be reviewed by a member of the franchising team. They will respond by sending you an information booklet to your email address for you to read through.
   3. Phone interview. The franchising team will arrange a 10-15 minute call with you to answer any questions you may have.
   4. Speak with franchisees. You will be required to visit some Bakers Delight bakeries and speak with some existing franchisees.
   5. Face to face interview. You will be required to have a meeting in the office of your home state to chat about your plans.
   6. Two days working in a Bakers Delight. Ensure that Bakers Delight is the right fit for you by working alongside a franchisee in a bakery.

   Successful franchisees will be enrolled on a 16-week intensive training program before they begin running their own Bakers Delight, so no experience is necessary to apply.

   How to finance a Bakers Delight franchise

   Given its length of time in the Australian bakery industry and its market share when it comes to bakeries and bread products, Bakers Delight is an approved franchise with several major lenders in Australia.

   This makes obtaining finance easier for potential Bakers Delight franchisees, with many major banks looking favourably upon loan applications to purchase a new or existing franchise.

   Consider which of these finance options may best suit your circumstances:

   • Unsecured business loan. Many unsecured business loans have loan terms of two years, but this can vary from three months to five years. To be eligible for an unsecured business loan, you will need to have been operating a business for a certain period of time and have achieved a minimum amount of revenue over that time. Business financial requirements make unsecured business loans a good alternative to secured business loans. Loan amounts tend to be a maximum of $500,000.
   • Secured business loan. Lenders will typically lend around 70-80% of franchise costs with a secured business loan, provided you own residential property of an appropriate value that you are willing to offer up as security for the loan. The terms of the loan will inevitably vary between lenders, but loan terms from 25-30 years are common for secured business loans. The lender will require a professional valuation of the property before making an offer and, depending on the results of the valuation and the loan amount sought, may require additional security for the loan.
   • Franchise loan. Franchise loans involve borrowing against the value of the proposed franchise business itself and do not require the applicant to put up residential property as security for the loan. Franchise loans also have the advantage of requiring a smaller deposit or a lower amount of equity, but they will also have a much shorter loan term than that of a business loan. This is because the loan term of a franchise loan is directly linked to the initial term of the franchise agreement, which is unlikely to be longer than 10 years.

   Bakers Delight also has accreditation with a number of Australian banks, which may lend up to 60% of the value of the purchase price of the franchise. You will then need to fund the remaining 40% using your own capital or by using the equity you have in other assets.

   How to get approved for finance

   Applying for finance to purchase a Bakers Delight bakery is similar to attending a job interview. Not only must the lender be satisfied that the proposed business is a good investment and that you have the financial backing and security necessary to service the loan, the lender must also be satisfied that you, as the prospective business owner, have the ability to run a successful, profitable business and service your ongoing loan repayments.

   When attending your appointment with your prospective lender, plan ahead and bring as much detailed, professionally prepared information and documentation as possible. Prior preparedness will show the lender that, not only are you being open and honest about your financial situation, but you have the ability to plan ahead and take a professional approach to your new business venture.

   At a minimum, prepare and bring the following documents:

   • Your updated resume, highlighting relevant business experience, qualifications, education, skills and training.
   • The proposed franchise agreement.
   • A detailed business plan, including at least 12 months of profit and loss and cash flow projections.
   • Your personal tax returns for at least the last two years.
   • If you own or run a business, full audited financial statements for the business for at least the last two years.
   • Full bank statements for all bank accounts, loan accounts and credit card accounts in your name.

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   Compare Bakers Delight business loans

   Updated September 22nd, 2019
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   Name	Product	Min. Loan Amount	Max. Loan Amount	Loan Term	Upfront Fee	Apply Now
   Capify Unsecured Business Loan		$5,000	$300,000	3 months to 1 year	3% origination fee	Go to site More Info	An unsecured business loan up to $300,000 for eligible businesses. Businesses operating for a minimum of 6 months and having turnover of at least $10,000 a month can apply.	Compare	loading Fetching your data...
   Lumi Unsecured Business Loan		$5,000	$200,000	3 to 18 months	2.5% establishment fee	Go to site More Info	Apply for up to $200,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.	Compare	loading Fetching your data...
   OnDeck Business Loans		$10,000	$250,000	6 months to 2 years	2.5% origination fee	Go to site More Info	Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.	Compare	loading Fetching your data...
   Moula Business Loan		$5,000	$500,000	6 months to 3 years	$0 application fee	Go to site More Info	A loan of up to $500,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.	Compare	loading Fetching your data...
   Prospa Business Loan		$5,000	$300,000	3 months to 2 years	3% origination fee	Go to site More Info	A business loan available up to $300,000 that can be funded in 1 business day. Must have a turnover of $6,000+ per month and provide 6 months of trading history, 3 months history for existing business purchases.	Compare	loading Fetching your data...
   Valiant Finance Business Loan Broker		$5,000	$1,000,000	3 months to 5 years	$0 application fee	Enquire now	A Small Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 60 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.	Compare	loading Fetching your data...
   GetCapital Flexible Business Loan		$10,000	$500,000	6 months to 2 years	$0 establishment fee	Go to site More Info	A flexible business loan up to $500,000 with convenient top up and redraw facilities. Business must have been operating for 9 months+ and have monthly sales of $10,000+. Note: The establishment fee will be waived if you apply and are approved before 15 October 2019.	Compare	loading Fetching your data...
   BOQ Business Term Loan		$10,000	$100,000,000	Up to 25 years	0.75% application fee	Go to site More Info	Borrow from $10,000 with multiple repayment options including optional fixed rate periods.	Compare	loading Fetching your data...
   businessloans.com.au Flexible Business Loan		$5,000	$500,000	6 months to 2 years	2% drawdown fee	Go to site More Info	A business loan up to $100,000 for unsecured loans, or $500,000 for secured loans that you can use for any business purpose. Transparent costs and redraw facility available.	Compare	loading Fetching your data...

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   Frequently asked questions

   • What are the benefits of opening a Bakers Delight franchise rather than starting my own bakery?

     The start-up costs of a new, independent bakery will inevitably be lower than buying into a franchise system such as Bakers Delight. On the other hand, Bakers Delight provides full training to all new franchisees, both in relation to business management and the day-to-day running of the bakery, and how to create the baked goods, prepare coffees and create other products that form the basis of the business.

     If you have significant experience running or managing a bakery and are ready to step out on your own, an independent bakery may be a more cost-effective solution. On the other hand, if you lack bakery experience and want the backing of Bakers Delight as a franchisor, a franchise system may be the better choice.

   • What is the Bakers Delight franchise agreement?

     Also known as a Uniform Franchise Offering Circular (UFOC), the Bakers Delight franchise agreement is a mandatory document provided by Bakers Delight as the franchisor to all potential franchisees. It sets out in clear terms the full costs associated with the purchase of a Bakers Delight franchise.

     It is your responsibility to do your due diligence before signing the agreement, using the Bakers Delight franchise agreement as a starting point. All new franchisees are recommended to seek independent legal and financial advice before signing an agreement.

Stacey Cole

Stacey Cole has degrees in law and science, but happily left the busy world of litigation to be a full-time mother and writer. In her spare time she loves travel, roller coasters, and old-school gaming, even if her daughter can already beat her at most games.