Panera Bread Franchise Agreement: What You Need to Know
If you`re interested in purchasing a Panera Bread franchise, one of the first steps you`ll need to take is to review and sign a franchise agreement. This contract outlines the terms and conditions under which you`ll operate your franchise business. Here are some key things to know about the Panera Bread franchise agreement:
1. Franchise Fee and Royalties
To open a Panera Bread franchise, you`ll need to pay a franchise fee of $35,000. In addition, you`ll be required to pay ongoing royalties of 5% of your gross sales and an advertising fee of 3% of your gross sales. These fees are standard for most franchise agreements and are used to cover the costs of support and marketing provided by the franchisor.
2. Territory
Your franchise agreement will specify the territory in which you`re allowed to operate your Panera Bread franchise. This territory may be exclusive, meaning that no other Panera Bread franchises can open within a certain distance from your location. Alternatively, it may be non-exclusive, meaning that other franchises may open in your area.
3. Training and Support
Panera Bread provides comprehensive training and support for its franchisees. Your franchise agreement will outline the training programs that you`ll be required to attend, including a 6-week bakery-cafe training program and ongoing training opportunities. Additionally, you`ll have access to support from Panera Bread`s field operations team and other resources to help you run your business.
4. Term and Renewal
Your franchise agreement will specify the term of your franchise agreement, which is typically 10 years. At the end of the term, you`ll have the option to renew your agreement, subject to certain conditions. These conditions may include meeting certain performance goals, paying your fees, and complying with the terms of your agreement.
5. Termination
Your franchise agreement will also outline the circumstances under which your franchise agreement may be terminated. These may include failure to meet performance standards, failure to pay fees, or breach of the agreement`s terms and conditions. If your franchise agreement is terminated, you may be required to pay damages to Panera Bread and to cease using its trademarks and other intellectual property.
In summary, the Panera Bread franchise agreement is a legally binding contract that outlines the terms and conditions under which you`ll operate your franchise business. By carefully reviewing and understanding this agreement, you`ll be better prepared to run a successful Panera Bread franchise.