Kolache Factory
In 1982, Kolache Factory was born from a desire to create and offer fresh, high quality breakfast items that could be eaten on-the-go. At the time, kolache, a slightly sweet fresh-baked pastry traditionally filled with sausage, cheese, or fruit that originated in Eastern Europe, was largely unknown in Houston, TX. Today, with its delicious, nutritious and freshly baked kolaches, Kolache Factory is one of the fastest growing companies in the Houston region and is expanding nationwide. Furthermore, Kolache Factory has received national attention for its novel concept and was named one of the “Top 5 Drive-Thru’s in America” by the Food Network as well as one of the Top 20 Bakery-Cafes to Watch by Franchise Times.
Kolache Factory presents exciting opportunities for franchisees entering the food service and baking industry. Bakeries and cafes currently represent one of the most popular and successful franchise concepts, and Kolache Factory markets unique, delicious and high quality products that will continue to grow in popularity. Kolache Factory also offers a low initial franchise investment with the potential for a high return.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
15 |
18 | 18 |
| | % Change | -- |
20% | 0% |
| | Company-Owned |
18 |
19 |
21 |
| | % Change | -- |
5.6% |
10.5% |
| | Total | 33 |
37 |
39 |
| | % Change |
45.5% |
48.7% |
46.2% |
| | Franchised as % of Total | 0.00% | 0.00% | 0.00% |
Investment Required
The initial franchise fee for a Kolache Factory franchise is $25,000, with an option fee included of $7,000.
Kolache Factory provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| | Franchise Fee |
$18,000 |
$18,000 |
| | Option Fee | $7,000 | $7,000 |
| | Development Fee (per franchise unit) | $7,000 | $7,000 |
| | Rent, Security, and Utility Deposits | $3,330 | $10,000 |
| | Architectural, Engineering, and Legal Fees | $10,000 | $20,000 |
| | Leasehold improvements | $140,000 | $180,000 |
| | Cabinetry & Millwork | $20,000 |
$26,000 |
| | Equipment, Furniture, & POS System | $99,000 | $125,000 |
| | Grand Opening Expenses | $2,000 | $3,000 |
| | Signage | $5,000 | $9,000 |
| | Manager Training | $0 | $10,000 |
| | Initial Inventory | $8,000 | $10,000 |
| | Miscellaneous Expenses | $5,000 | $8,000 |
| | Additional Funds and Working Capital (3 months) | $20,000 | $40,000 |
| |
Total Initial Investment | $340,330 | $488,000 |
Ongoing Expenses
Kolache Factory franchisees pay weekly royalty fees equal to 6% of gross sales and weekly advertising fund contributions equal to 3% of gross sales. Franchisees also contribute a minimum of 1% gross revenues to co-op advertising. Additionally, franchisees pay a website development and maintenance fee equal to $25 per month and an intranet development and maintenance up to $50 per month.
What You Get—Training and Support
Prior to opening a franchise, Kolache Factory provides franchisees with extensive training and support. Franchisees participate in an intensive training program of approximately 220 hours of classroom and on-the-job training in Houston, TX. Material covered in the training includes store operations, POS systems, inventory, sanitation, internal accounting, marketing and advertising.
In preparation for opening a new franchise, Kolache Fractory also supplies franchisees with recommendations about store layout, utility requirements, signage, furniture and fixtures specifications, and contact information about general contractors. Kolache Factory provides continuing operating assistance to the franchisee throughout the entire franchise process. Kolache Factory assists franchisees in promotion plans and marketing campaigns and advisors are available for occasional consultations regarding operations and management. Additionally, Kolache Factory offers ongoing remote and on-site technical support for the POS system, inventory control system and computer system. Franchisees further benefit from the opportunity to attend conventions, seminars and other franchise-related functions held periodically by Kolache Factory.
Territory
Kolache Factory does not grant exclusive territories except under certain circumstances such as upon the signing of a Development Agreement.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Hottest New Franchises publication.
|
