Kolache Factory Franchise Cost

The other Texas bakery franchise. Founded in Houston in 1982, about 60 locations, and the closest comparison to BreadHaus in size. Here is what it costs.

By Bryan Motta, co-owner of BreadHaus · Updated September 2026

Kolache Factory is a Houston-based quick-service bakery cafe founded in 1982 and franchising since 2000. Stores sell 20 to 25 varieties of savory and sweet kolaches plus coffee, baked fresh on site each morning. There are about 60 locations, mostly in Texas and the Midwest, split between corporate and franchised. Absentee ownership is not allowed. Entrepreneur ranked it #112 among the top food franchises of 2025.

What Kolache Factory costs

Kolache FactoryBreadHaus
Total initial investment$641,900 to $937,400 (Entrepreneur); ~$850,000 headline (official)$227,500 to $580,000
Initial franchise fee$44,900 ($45K on official site)$45,000
Royalty6% of gross sales6% of gross sales
Marketing3%1% brand fund + 2% local
Liquid capital required$150,000 (Entrepreneur); not published officiallyNo minimum
Net worth required$500,000 (Entrepreneur); not published officiallyNo minimum
Typical storeNot published2,500 to 3,000 sq ft
US locationsAbout 60, roughly half franchised2, both in Texas
Item 19 (avg unit sales)Not confirmed; third-party estimates of $664K to $871K, year unstated$739,533 (Grapevine, 2025)
HeadquartersHouston, TXGrapevine, TX

The official franchising site gives a single headline figure of about $850,000. Entrepreneur's directory and SharpSheets both list $641,900 to $937,400, which is presumably the Item 7 range behind that headline. The franchise fee is $44,900 (rounded to $45K on the official site). Older third-party pages still show $350,000 to $775,000; those are out of date.

Ongoing fees are 6% royalty and 3% marketing, for 9% of sales. Financial requirements are not published on the official site; Entrepreneur reports $150,000 liquid and $500,000 net worth.

Item 19 is the gap. We could not confirm from public sources whether Kolache Factory's FDD includes a financial performance representation. Third-party sites quote annual revenue figures of $663,589 and $871,000 with no year and no attribution to an Item 19, so treat those as unverified. If you are serious about the brand, request the FDD and go straight to Item 19. If it is not there, ask why.

Territory is also worth asking about. The official site says availability "varies by city, trade area and development opportunity," and the Franchising.com listing states the brand is not taking new applicants through that portal. Direct application appears to be open.

How Kolache Factory compares to BreadHaus

This is the fairest comparison on our list, because both brands are Texas-born, similar in unit economics, and charge the same 6% royalty. So the differences are real differences.

Product first. A kolache is a breakfast and lunch item, mostly grab-and-go, with the morning rush doing most of the work. Bread is a seven-day product with a weekend peak, and a BreadHaus sells pastries, sandwiches and coffee around it. Our Grapevine bakery's 17.7% cost of goods in 2025 reflects that bread from flour is cheap to make and hard to make well, which is what the 14-day training is for.

On cost, Kolache Factory's floor ($641,900) is above our ceiling ($580,000), and their headline $850,000 is close to double our midpoint. On fees, they charge 3% marketing where we charge 1% plus 2% you spend locally, so 9% for both. On requirements, they screen at $150,000 liquid and $500,000 net worth if Entrepreneur's figures hold; we do not set a floor.

On transparency, we publish an Item 19 and they may not. Our Grapevine number is $739,533 for 2025, on the cost page with the required caveats. Their number, if it exists, is in their FDD. Ask for both and put them side by side.

Sources

See the full bakery franchise cost comparison for all six brands, or the BreadHaus cost guide for every line of our Item 7.

BM

Bryan Motta is co-owner of BreadHaus with his wife, Fara. They bought the original Grapevine, Texas bakery in 2024, opened a second location in Frisco in 2026, and founded BreadHaus Franchising, LLC. Bryan writes every page in this guide himself and does every initial franchise call personally.

Questions people ask about this comparison

How much does a Kolache Factory franchise cost?

About $641,900 to $937,400 per Entrepreneur and SharpSheets, including a $44,900 franchise fee. The official franchising site gives a headline figure of about $850,000.

What are Kolache Factory's fees?

A $44,900 initial franchise fee, 6% royalty and 3% marketing contribution, per the official site and Entrepreneur.

Does Kolache Factory publish an Item 19?

We could not confirm it from public sources. Third-party revenue figures of roughly $664,000 to $871,000 per year are unattributed and undated. Request the FDD and check Item 19 directly.

Is Kolache Factory only in Texas?

No. It started in Houston in 1982 and has about 60 locations, mostly in Texas and the Midwest, with a mix of corporate and franchised stores.

Two ways to take the next step

Request the full BreadHaus Franchise Disclosure Document, or grab 15 minutes with Bryan. He does every first call himself, including with people who are still comparing brands.

Request the FDD Book 15 minutes with Bryan