In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Great Harvest franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Great Harvest franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the Great Harvest franchise opportunity
Section V – Presentation and analysis of Great Harvest’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average and median annual gross sales for the 32 single-site Great Harvest bakery cafes and 6 sets (12 total) of hub-and-spoke Great Harvest bakery cafes (new concept) that were open during all of calendar year 2022
- 2022 average and median annual gross sales for the 6 hub and 6 spoke Great Harvest bakery cafes (new concept) that were open during all of calendar year 2022
- 2021 average gross sales, variable costs, fixed costs, total operating expenses, and net operating income before owner’s pay, depreciation, amortization, interest, and taxes for the 21 single-site Great Harvest bakery cafes and 5 sets (10 total) of hub-and-spoke Great Harvest bakery cafes (new concept) that submitted the necessary reports to Great Harvest
Section VI – Key ratios, comparables, computations, and analyses for the Great Harvest franchise opportunity (exclusive content for Platinum subscribers)
Section I – Great Harvest Franchise Costs
- Great Harvest franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $35,000
- Expenses While Training: $2,049 to $10,300
- One Month’s Rent: $2,500 to $32,892
- Real Estate and Improvements: $965 to $287,500
- Equipment: $84,785 to $234,353
- Signs: $4,059 to $15,321
- Prepaid Expenses and Deposits: $4,500 to $32,000
- Opening Inventory (Ingredients and Supplies): $10,000 to $25,949
- Grand Opening Advertising Costs: $12,000
- Organizational Costs/Miscellaneous: $820 to $19,116
- Additional Funds for 3 Months: $20,000
- Total Estimated Great Harvest Franchise Costs: $176,678 to $725,431
Section II – Great Harvest’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Great Harvest’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $35,000 ($15,000 for your second or subsequent bakery cafe)
- Continuing Fee: 5% of monthly Gross Sales
- Marketing Fee: 2.5% of monthly Gross Sales
Section III – Number of Franchised and Company-Owned Great Harvest Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- Outlets at the Start of the Year: 173
- Outlets at the End of the Year: 171
- Net Change: -2
2021
- Outlets at the Start of the Year: 171
- Outlets at the End of the Year: 168
- Net Change: -3
2022
- Outlets at the Start of the Year: 168
- Outlets at the End of the Year: 161
- Net Change: -7
Company-Owned
2020
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2021
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2022
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
Section IV – News Updates on the Great Harvest Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Great Harvest Franchise (Item 19, 2023 FDD)
- There historically have been 6 principal types of Great Harvest Stores:
- (1) a traditional Great Harvest bread company baking bread and other products for retail sale;
- (2) a traditional Great Harvest bread company that has added sandwiches to its menu with limited seating but without 2 customer restrooms;
- (3) a single-site, bread-baking Great Harvest “bakery cafe” with some seating and a menu that includes sandwiches;
- (4) a multi-unit operation where 2 or more locations described in (3) above owned by the same franchisee work together, with one location baking bread and then supplying it to the other locations;
- (5) a “new concept” Great Harvest bakery cafe distinguished by permanent seating for 35 or more people; 2 customer restrooms; and a menu that includes breakfast sandwiches, cold and hot sandwiches, baked goods, salads, and coffee;
- (6) a “new concept hub-and-spoke” with the primary “hub” location baking bread and other products to supply the “spoke” locations with the baked goods that supplement the cafe products made in the spoke(s), and at least one of the Great Harvest bakery cafes meets the “new concept” definition outlined in (5).
- Great Harvest currently offers franchises only for Great Harvest bakery cafes operating as single-site, new concept bread-baking bakery cafes (described in (5) above) or, if the franchisee intends to have a “hub-and-spoke” operation (described in (6) above), Great Harvest bakery cafes that are bread-baking (“hub”) locations and non-bread-baking (“spoke”) locations.
- Depending on local market conditions, however, Great Harvest may offer franchises for “new concept” bakery cafes even if they cannot have 35 permanent seats or all the standard features of the “new concept” bakery cafe.
Part 1 – Average and Median Sales by Category of Bakery Cafe (for the 12 Months Ended December 31, 2022)
- The bakery cafes whose results are displayed in Part 1 represent the new format bakery cafes that were open during all of calendar year 2022. There are 44 total bakery cafes represented in this chart.
- Part 1 shows the average and median annual Gross Sales for the 12 months ended December 31, 2022 for the Great Harvest bread companies falling into the following categories:
- (a) single-site, new concept bakery; and
- (b) new concept hub-and-spoke.
Single-Site Bakery Cafe (New Concept)
- Average Annual Gross Sales: $872,439
- Median Annual Gross Sales: $786,169
- Number of Bakery Cafe Locations: 32
Hub-and-Spoke (New Concept)
- Average Annual Gross Sales: $1,650,768
- Median Annual Gross Sales: $1,353,520
- Number of Bakery Cafe Locations: 6 sets (12 total)
Part 2 – New Concept Hub-and-Spoke Bakery Cafe Locations (for the 12 Months Ended December 31, 2022)
- Part 2 shows the average and median annual Gross Sales for the 12 months ended December 31, 2022, only for the Great Harvest bakery cafes considered to be new concept hub and spoke bakery cafe combinations, separated into the following 2 categories of bakery cafes:
- (a) all bread-baking (hub) new concept locations that have 1 related non-bread-baking (spoke) location; and
- (b) all non-bread-baking (spoke) new concept locations by themselves.
All Hubs (New Concept)
- Average Annual Gross Sales: $1,080,095
- Median Annual Gross Sales: $965,366
- Number of Bakery Cafe Locations: 6
All Spokes (New Concept)
- Average Annual Gross Sales: $570,673
- Median Annual Gross Sales: $595,379
- Number of Bakery Cafe Locations: 6
Part 3 – Average Operating Results (for the 12 Months Ended December 31, 2021)
- Part 3 represents the operating results from reporting new concept bakery cafes, by category, that submitted their income statements for the 2021 calendar year. (Great Harvest had not yet received income statements from all reporting new concept bakery cafes for the 2022 calendar year as of the issue date of the 2023 disclosure document.)
Single-Site Bakery Cafe (New Concept)
- Average Gross Sales: $975,427 (100.0%)
- Average Variable Costs: $656,062 (67.83%)
- Average Fixed Costs: $122,811 (13.29%)
- Average Total Operating Expenses (Excludes Bread Company Owners’ Pay, Depreciation, Amortization, Interest, and Taxes): $778,873 (79.85%)
- Average Net Operating Income Before Bread Company Owners’ Pay, Depreciation, Amortization, Interest, and Taxes: $196,554 (18.88%)
- Number of Reporting Bakery Cafe Locations: 21
Hub-and-Spoke (New Concept)
- Average Gross Sales: $1,567,653 (100.0%)
- Average Variable Costs: $1,043,438 (66.56%)
- Average Fixed Costs: $222,552 (14.19%)
- Average Total Operating Expenses (Excludes Bread Company Owners’ Pay, Depreciation, Amortization, Interest, and Taxes): $1,265,990 (80.75%)
- Average Net Operating Income Before Bread Company Owners’ Pay, Depreciation, Amortization, Interest, and Taxes: $323,710 (20.64%)
- Number of Reporting Bakery Cafe Locations: 5 sets (10 total)
- “Variable Costs” consists of ingredients, labor before bread company owners’ pay, supplies, promotion, and royalty to franchisor, ranging from 1.5% to 7% of Gross Sales.
- “Fixed Costs” consists of rent, utilities, and other operating costs.
Section VI – Great Harvest Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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