Kolache Factory is a bakery-café franchise that originated in Houston, Texas, in 1982, founded by John and Jerri Banks. The brand is celebrated for popularizing kolaches in the United States—flaky, handheld pastries traditionally filled with savory meats, cheeses, or sweet fruits. These versatile baked goods offer a fast, satisfying breakfast option for busy lifestyles.
Franchising began in 2000, and Kolache Factory has grown to include more than 60 stores across the country. The company maintains a blend of corporate-owned and franchised locations, with a strong presence in states such as Texas, California, Indiana, and South Carolina.
Recognized for its culinary creativity, Kolache Factory was ranked the #1 Baked Goods franchise by Entrepreneur magazine in both 2022 and 2023. Its focus on innovation and customer satisfaction has earned it a spot among the top bakery franchises nationwide.
Now based in Katy, Texas, the franchise continues its growth by prioritizing high-quality ingredients and leveraging modern technology to enhance its service and convenience.
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.
Kolache Factory provides a structured and comprehensive training program to franchisees and their management staff to ensure proper operations of each Store. The franchisor outlines multiple types of training, each with specific requirements and delivery formats:
Kolache Factory provides a limited form of territory protection to its franchisees. While the franchisor does not offer exclusive territories, it assigns each Store a specific “Trade Area” defined in Exhibit B of the Franchise Agreement.
Within this Trade Area, Kolache Factory agrees not to open or authorize another Store, granting the franchisee some protection from direct competition by other traditional outlets operating under the same brand.
However, the territory protection has important limitations. Franchisees receive no protection from Special Outlets (like kiosks or mobile units), nor from company or affiliate sales through supermarkets, e-commerce, catering, or promotional activities in or near the Trade Area.
KEY FRANCHISE STATS
All you need to know about this franchise
?
?
?
?
Below are some of
Kolache Factory
key competitors in the
Breakfast
sector.
30
$44,900
$642,000
$937,000
n.a.
$871,000
$xxx,xxx
72.4%
n.a.
14.0%
n.a.
Famous Toastery is a breakfast, brunch, and lunch restaurant franchise offering made-from-scratch dishes and specialty beverages, serving families and daytime diners, and known for closing by midafternoon, fresh ingredients, attentive team-service, and a strong focus on the booming brunch segment.
?
?
Vicious Biscuit is a breakfast-and-brunch franchise offering overstuffed biscuit sandwiches, coffee and brunch fare, serving early-day diners, families and brunch crowds, and known for Southern-flavor innovation, fast-casual scalability and strong repeat business.
?
?
Squeeze In is a brunch-focused restaurant franchise offering extensive omelette menus, pancakes, and lunch items, serving breakfast and lunch diners, and known for vibrant atmosphere, unique menu, and expansion through franchising.
?
?
Rachel’s Kitchen is a fresh-casual café franchise offering wholesome, made-to-order food from breakfast through dinner, serving singles, families and health-minded consumers, and known for fresh ingredients, broad appeal and growth-oriented franchise model.
?
?
Friendly’s is a casual-dining franchise offering ice cream, burgers, breakfasts and family meals, serving families and casual diners, and known for nostalgic American fare, classic ice-cream sundaes and broad national recognition.
?
?
Biscuit Belly is a Southern-inspired café franchise offering biscuit sandwiches, brunch fare, coffee, and comfort dishes, serving brunch lovers and urban diners, and known for handcrafted biscuits, bold flavour profiles, and stylish café environments.
?
?
Choosing a franchise goes beyond reviewing fees and financials — it requires an honest assessment of your goals, skills, and risk tolerance. This article outlines the key questions prospective owners should ask before committing. It helps clarify whether the opportunity aligns with your lifestyle, long-term plans, and operational preferences.
Speaking with current and former franchisees is one of the most reliable ways to understand how a franchise really operates. This guide explains how to conduct validation calls, what questions to ask, and how to identify patterns in feedback. It provides a practical framework for uncovering real performance expectations and support quality.
Not all franchise opportunities offer the same potential. This article breaks down how to evaluate a brand’s industry, financial health, support systems, and competitive positioning. It helps prospective buyers compare options and identify franchises with strong long-term viability.
A clear, well-structured business plan is essential for securing financing and preparing for the realities of franchise ownership. This article explains how to build a plan that covers market analysis, operations, staffing, and local marketing. It also outlines how to create realistic pro forma financials, including revenue projections, startup costs, and break-even analysis. Readers gain a practical framework they can use when applying for loans or planning their first years of operations.
.png)
