Every line item, every ongoing fee, and the actual revenue from our own bakery. No industry averages, no guesswork, just the numbers we are required to disclose and a few we are not.
If you have searched for what a bakery franchise costs, you have probably found a lot of pages written by software companies, spreadsheet sellers and franchise directories. They quote a range, cite an industry report, and move on. None of them have opened a bakery.
I have. My wife Fara and I bought BreadHaus in Grapevine, Texas in 2024. It had been baking European-style bread for the same neighborhood since 1996. In 2026 we opened our second location in Frisco, in a converted pizza restaurant. Now we are franchising, which means we had to put every number in writing in a Franchise Disclosure Document, or FDD, that the FTC and the State of Texas can hold us to.
This page walks through those numbers. It covers what you pay before you open, what you pay every week after you open, what our Grapevine bakery actually took in last year, and how people like you typically pay for all of it. Where I am allowed to give you a real figure, I do. Where the law says I cannot, I tell you that too.
It is long on purpose. If you only have two minutes, read the two tables and the section called "Who this is not for." If you have twenty, read the whole thing and then request the FDD, which has another 140 pages of detail behind everything here.
Item 7 of our FDD lists every category of expense you should expect between signing and your first three months of operation. Here it is, exactly as disclosed. The low end assumes a smaller second-generation space with a cooperative landlord. The high end assumes a larger shell space where you pay for most of the finish-out yourself.
| Expense | Low to high |
|---|---|
| Initial franchise fee | $45,000 |
| Lease, utility and security deposits | $5,000 to $15,000 |
| Rent and occupancy costs (first months) | $10,000 to $30,000 |
| Leasehold improvements (build-out) | $25,000 to $150,000 |
| Architect, design and construction fees | $3,000 to $15,000 |
| Signage, interior and exterior | $5,000 to $15,000 |
| Furniture, fixtures and equipment | $100,000 to $175,000 |
| Computer hardware, software and POS | $5,000 to $15,000 |
| Business licenses and permits | $500 to $1,000 |
| Professional services (attorney, accountant, entity setup) | $1,500 to $9,000 |
| Initial inventory and supplies | $10,000 to $30,000 |
| Insurance (initial premium payment) | $2,000 to $10,000 |
| Initial training costs (travel, lodging, wages) | $7,000 to $10,000 |
| Grand opening advertising (required) | $10,000 |
| Additional funds, first 3 months | $15,000 to $50,000 |
| Total estimated initial investment | $227,500 to $580,000 |
Three things worth knowing about that table.
Equipment is the biggest single line, not the build-out. Deck ovens, spiral mixers, proofers, walk-in refrigeration and a real bread-slicing setup are what make a bakery a bakery, and they cost more than most people expect. The $100,000 to $175,000 range covers all of it, including smallwares. We go through the full list on the build-out and equipment page.
The build-out range is wide because the space matters more than anything else. Our Frisco location was a former pizza restaurant. It already had a grease trap, a hood, commercial electrical and a walk-in. That is the difference between the $25,000 end and the $150,000 end. If you take nothing else from this page, take this: find a second-generation restaurant space before you fall in love with a new shell.
Working capital is in the number, but owner salary is not. The $15,000 to $50,000 in additional funds covers payroll, supplies and expenses for roughly the first three months. It does not include any draw for you, and it does not include debt service on a loan. Plan for both separately.
The franchise fee has two discounts. Active-duty military, reservists and honorably discharged veterans pay 20% less on their first franchise fee. Existing BreadHaus owners in good standing pay 75% of the then-current fee for a second location.
The upfront number gets all the attention, but the ongoing fees are what actually shape your margins for the next ten years. Here is the full stack from Item 6 of the FDD. I am listing all of it, including the small ones, because I would rather you find out here than in a lender's underwriting call.
| Ongoing fee | Amount |
|---|---|
| Royalty | 6% of gross sales, weekly |
| Brand Marketing Fund | 1% of gross sales, weekly |
| Required local advertising spend | 2% of gross sales (paid to your local advertisers, not to us) |
| Technology fee | $50 per week |
| Grand opening marketing | $10,000, one time, in the 90 days around opening |
So the honest way to think about it is 7% of sales to BreadHaus, plus 2% of sales that you spend on your own marketing in your own town, plus about $2,600 a year in technology. On a bakery doing $700,000 a year, that is roughly $49,000 to us and $14,000 in local ads.
What the 7% buys you is the part every franchisor describes vaguely, so I will be specific: recipes and processes that took 30 years to refine, a 14-day training program for you and your head baker in Grapevine, site selection and lease help, negotiated pricing with our ingredient and equipment vendors, the POS and online ordering system, brand marketing, and a person to call when the proofer dies on a Saturday morning. Whether that is worth 7% is a fair question, and the franchise versus independent page tries to answer it honestly.
The FDD also lists fees that only apply in specific situations, like a transfer fee if you sell, a renewal fee at year ten, additional training fees if you bring more than two people, and late payment interest. They are all in Item 6 and we explain each one on the fees page.
This is the section most franchise websites skip, because the FTC only lets a franchisor share financial results if they are disclosed in Item 19 of the FDD. Many franchisors choose not to include an Item 19 at all. We did, because I think it is impossible to make a $300,000 decision without it.
These are the 2025 results for our company-owned BreadHaus in Grapevine, Texas, a bakery that has been operating since 1996 in a shopping center off Dallas Road.
| 2025, Grapevine company-owned location | Amount | % of revenue |
|---|---|---|
| Gross revenue | $739,533 | 100% |
| Cost of goods sold | $130,817 | 17.7% |
| Gross profit | $608,736 | 82.3% |
| Labor costs | $202,361 | 27.4% |
| Revenue after COGS and labor | $406,375 | 54.9% |
| Estimated royalty and Brand Marketing Fund (7%) | $51,769 | 7% |
| Revenue after COGS, labor and royalties | $354,606 | 47.9% |
Some outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much. The figures above are from the unaudited books of our affiliate, Crust & Crumb, LLC, for the twelve months ended December 31, 2025. They do not reflect rent, utilities, insurance, local marketing, taxes, debt service, owner compensation or other operating expenses, all of which you will have. The Grapevine bakery has operated since 1996; a new location will likely have lower revenue in its first year and possibly in following years. Written substantiation is available on request. This is a summary of Item 19 of the BreadHaus 2026 Franchise Disclosure Document; the full Item 19 controls.
A few plain-language notes on that table, because it is easy to read it wrong in either direction.
The 47.9% line is not profit. It is what is left before rent, utilities, insurance, your 2% local advertising, credit card fees, repairs, accounting, and paying yourself. On a leased 2,500 square foot space in a DFW suburb, those items together are substantial. What the table does tell you is the shape of the business: bread has a low cost of goods and a meaningful labor cost, because someone has to be there at 3 a.m. to bake it. That is the opposite of a coffee-and-pastry concept that buys frozen product, and it is why the equipment and training matter so much.
The profitability page goes deeper on what drives those percentages and what a first-year ramp typically looks like. I will not put a projection on this site because the law does not allow it and because I would not trust one from anyone else either.
Almost nobody who calls us has $400,000 sitting in a checking account. The typical BreadHaus applicant is a first-time business owner with some savings, some home equity, a retirement account, and a spouse who is either fully in or slightly nervous. That is a normal profile and it is fundable.
The five sources we see, roughly in order of how often they come up:
BreadHaus does not finance the franchise fee or any part of the investment. We do introduce qualified candidates to lenders who have funded bakeries before, and we will walk through the FDD with your lender if they ask. The financing page covers each option, what it requires, and how long it takes.
I would rather lose a lead than sell a franchise to someone it will not work for. A BreadHaus is probably not the right fit if:
On the other hand, if you have never run a bakery, that is not a disqualifier. None of us came from baking. The 14-day training and the first-year support exist for exactly that reason.
This page is the overview. Each topic below has its own page with the detail, written the same way: real numbers first, then what they mean.
What the $45,000 buys, how a 6% royalty works on a bakery's sales, the 1% brand fund, the 2% local ad requirement, and the list of situational fees most people never read.
Read the fees breakdown →The Frisco conversion as a worked example. What a second-generation restaurant space saves you, the full equipment list, and how much working capital to hold back.
See the build-out costs →Independent is cheaper on paper. Here is an honest accounting of what the fee and royalty buy, and who should skip the franchise and go it alone.
Compare the two paths →SBA 7(a), ROBS, home equity, partners and savings. What each one requires, what lenders ask about bakeries specifically, and how long each takes.
Explore financing options →What drives bakery margins, why bread is different from cupcakes and coffee, and how to read an Item 19 without fooling yourself.
Read about profitability →Great Harvest, Nothing Bundt Cakes, Paris Baguette, Crumbl, Kolache Factory and BreadHaus in one honest table, plus what the concept differences mean for the cost.
See the comparison →DFW, Austin, San Antonio, Houston and small towns. Rent, build-out and labor differences, plus the Texas-specific permits and taxes that apply.
Texas cost guide →All 23 items, including the complete Item 7 notes, every fee in Item 6, and the full Item 19 with substantiation. It is free and there is no obligation.
Request the FDD →A BreadHaus has a total estimated initial investment of $227,500 to $580,000, which includes the $45,000 franchise fee, build-out, equipment, opening inventory, training costs, grand opening marketing and three months of working capital. Across the industry, bakery franchises range from under $100,000 for small formats without their own ovens to more than $1.8 million for large cafe concepts.
$45,000, paid when you sign the Franchise Agreement. Active-duty military, reservists and honorably discharged veterans receive a 20% discount on their first franchise fee. A second location is 75% of the then-current fee.
BreadHaus charges a 6% royalty on gross sales and a 1% Brand Marketing Fund contribution, and requires you to spend 2% of gross sales on local advertising. There is a $50 per week technology fee and a required $10,000 grand opening spend. Situational fees, like a transfer fee if you sell, are listed in Item 6 of the FDD.
The company-owned BreadHaus in Grapevine, Texas had gross revenue of $739,533 in 2025, with cost of goods sold at 17.7% and labor at 27.4% of revenue, as disclosed in Item 19 of the 2026 FDD. Some outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much.
Yes. Most first-time owners combine personal savings with an SBA 7(a) loan, a ROBS rollover of retirement funds, or home equity. BreadHaus does not offer financing directly but works with lenders who understand the bakery model.
Our prototype plans are based on roughly 2,500 to 3,000 square feet. Smaller can work in the right layout. A former restaurant space with an existing hood, grease trap and walk-in will cut your build-out cost substantially.
No. You and your head baker attend a 14-day training program at our Grapevine bakery before you open, and you get on-site support through opening. What you do need is the willingness to be in the building and to hold a standard.
Request the full Franchise Disclosure Document, or grab 15 minutes with Bryan. He does every first call himself, including with people who are a year or two away from doing anything.
Request the FDD Book 15 minutes with Bryan