Breadsmith Franchise FDD, Costs & Fees (2025)

Breadsmith is a bakery franchise specializing in artisan bread and baked goods made from scratch using traditional European techniques.

Breadsmith, a cherished artisan bakery, was established in 1993 by Dan Sterling. His enthusiasm for European-style breads blossomed during his time studying in Norway, which inspired him to open the first Breadsmith bakery in Milwaukee, Wisconsin. From its inception, Breadsmith has been dedicated to crafting breads from scratch, using traditional baking methods.

The bakery's focus on quality and simplicity is evident in its diverse range of breads, made from essential ingredients like flour, water, salt, and yeast. These are often complemented by natural additions such as grains, fruits, nuts, and spices.

Seeing an opportunity for expansion, Breadsmith started franchising in 1994, merely a year after opening its doors. This decision was pivotal in spreading the bakery's love for authentic, high-quality bread to more communities throughout the United States.

Breadsmith's central operations are based in Whitefish Bay, Wisconsin. The headquarters directs the brand's mission to deliver exceptional breads and baked goods.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Development Fee $49,000 ($46,000 for veterans)
Equipment and small wares $57,960.60 - $170,000
Leasehold Improvements and Fixtures $192,000 - $215,000
Opening Inventory $4,000 - $7,500
Signage $5,000 - $8,000
Security Deposits $3,000 - $6,000
Promotion $500 - $4,000
Pre-Opening Training $5,000 - $7,500
Non-Owner Management Fee $0 - $5,000
Miscellaneous (legal, insurance, permits, office supplies, tools, etc.) $9,750 - $10,250
Additional Funds (6 months) $4,000 - $24,000
TOTAL $330,210.60 - $506,250 ($327,210.60 - $503,250 for veterans)
Type of Expenditure Amount
Initial Franchise Development Fee $49,000 ($46,000 for veterans)
Equipment and small wares $57,960.60 - $170,000
Leasehold Improvements and Fixtures $192,000 - $215,000
Opening Inventory $4,000 - $7,500
Signage $5,000 - $8,000
Security Deposits $3,000 - $6,000
Promotion $500 - $4,000
Pre-Opening Training $5,000 - $7,500
Non-Owner Management Fee $0 - $5,000
Miscellaneous (legal, insurance, permits, office supplies, tools, etc.) $9,750 - $10,250
Additional Funds (6 months) $4,000 - $24,000
TOTAL $330,210.60 - $506,250 ($327,210.60 - $503,250 for veterans)

Franchise Disclosure Document

Number of units

Training 

Breadsmith offers thorough training to franchisees to guarantee successful operations. The training encompasses:

Initial Training Program

Breadsmith hosts an initial training program for the franchisee and a chosen employee at a Breadsmith location, typically in Milwaukee, Wisconsin, or another designated site. This program lasts around three weeks and is scheduled to coincide closely with the store's opening. It may be conducted in a group setting with other franchisees and covers all essential aspects of running a Breadsmith bakery, including product preparation, store management, customer service, and financial management. Franchisees are responsible for their own travel, lodging, and meal expenses during the training.

On-Site Assistance

Additional on-site assistance may be provided by Breadsmith after the initial training period, especially during the store's launch phase. This includes further training and operational support to ensure a seamless start. Franchisees must cover the costs associated with this extra support, including any per diem charges incurred by Breadsmith's personnel.

Manager Training

If the franchisee is not involved in daily operations or reduces their involvement, a designated manager must be appointed to oversee the store. This manager is required to complete a training program provided by Breadsmith to ensure they are fully prepared to manage the bakery. The franchisee is responsible for all costs related to the manager's training, including a one-time Non-Owner Manager Fee of $5,000 prior to the start of the training.

Territory Protection

Breadsmith provides franchisees with a "designated territory," generally defined as the area within a 5-mile radius from the store. This distance is measured based on the routes an automobile would travel from the parking space closest to the store's front door. If the franchise is located within a regional shopping mall that has at least 500,000 square feet of space and at least two department stores as anchor tenants, the designated territory is defined by the physical boundaries of the mall itself.

However, Breadsmith reserves the right to sell franchises or open company-owned stores outside of this designated territory. Additionally, the franchisor may solicit, establish, and service bulk and wholesale accounts outside the franchisee's designated territory.

For franchisees operating a satellite store, Breadsmith agrees not to grant franchises or operate bakeries selling hearth-baked products under any name within a 5-mile radius of the satellite store. The same provisions apply regarding the physical boundaries of a regional shopping mall, if applicable.

Competitors

Below are some of

Breadsmith

key competitors in the

Baked Goods

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

25

New
+
-17%
-17%

$49,000

$101,000

$506,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

Manhattan Bagel

Manhattan Bagel is a café and bakery franchise offering bagels, breakfast sandwiches, coffee, deli items, and baked goods, serving morning and daytime patrons, and known for authentic bagels, café atmosphere, and consistent franchise support.

Franchisees

?

68
+
10%
10%
Investment

?

$582,000 - $1,094,000

The Bagel Nook

The Bagel Nook is a café franchise offering fresh-baked bagels, breakfast sandwiches, coffee, and deli items, serving morning commuters and neighborhood patrons, and known for handcrafted goods, local feel, and café ambiance.

Franchisees

?

3
+
200%
200%
Investment

?

$603,000 - $1,165,000

D.P. Dough

D.P. Dough is a late-night restaurant franchise offering overstuffed calzones with dozens of fillings, serving college students and young adults, and known for delivery-focused operations, fun campus culture, and signature made-to-order dough.

Franchisees

?

49
+
-2%
-2%
Investment

?

$121,000 - $360,000

Aunt Millies Bakeries

Aunt Millies Bakeries produces a variety of fresh bread and bakery products, offering high-quality and delicious baked goods for customers to enjoy.

Franchisees

?

154
+
-7%
-7%
Investment

?

$37,000 - $186,000

The Pretzel Twister

The Pretzel Twister serves freshly baked pretzels with a variety of flavors and dips, offering a delicious and satisfying snack option.

Franchisees

?

24
+
-14%
-14%
Investment

?

$122,000 - $339,000

Philly Pretzel Factory

Philly Pretzel Factory specializes in freshly baked, hand-twisted pretzels and a variety of dips, delivering authentic Philly flavors in a fast-casual setting.

Franchisees

?

146
+
-3%
-3%
Investment

?

$135,000 - $407,000