Frequently Asked Questions
Q: What is the total investment?
Q: May I build one restaurant or do I have to commit to several restaurants?
Q: Does Baker Bros offer real estate assistance on behalf of a franchisee such as providing real estate leases or build-to-suit arrangements?
Q: Does Baker Bros allow me to operate other businesses besides Baker Bros?
Q: May I "buy" a development territory?
Q: What kind of support can I expect from Baker Bros during the real estate and construction process?
Q: What other type of ongoing support does Baker Bros provide?
Q: What type of operations support does Baker Bros provide in conjunction with my first restaurant opening?
Q: I don’t have a foodservice background. Can I still franchise with Baker Bros?
Q: What are the franchise fees?
Q: What are the royalty and marketing fees?
Q: How much profit can I expect from my Baker Bros restaurants?
Q: Does Baker Bros offer Master Opportunities where the royalties and franchise fees are shared with the Master Franchisee?
Q: What is the total investment?
A: The total investment should range from about $430,500 to $656,000. This figure is an approximation and will be influenced by numerous factors including the size of the restaurant, number of seats, local market conditions, landlord allowances, deposits, etc. More Information back to top
Q: May I build one restaurant or do I have to commit to several restaurants?
A: Baker Bros is franchised exclusively through multi-unit Area Development Agreements of 3 locations or more. We do not offer single-store franchise agreements. back to top
Q: Does Baker Bros offer real estate assistance on behalf of a franchisee such as providing real estate leases or build-to-suit arrangements?
A: Each franchisee is responsible for acquiring their own real estate as well as contracting the construction of their restaurant. We do offer guidance on site selection and have rigorous site selection models to assist the franchisee, but we do not secure nor guarantee any real estate transaction for them. back to top
Q: Does Baker Bros allow me to operate other businesses besides Baker Bros?
A: Yes. Businesses and other restaurant franchises that are not truly direct competition, such as most QSR and full service casual dining restaurants, are allowed under our franchise agreements. There are certain non-compete covenants restricting our franchisees from franchising with direct competitors. For clarification, please contact our franchising department at 214-696-8780. back to top
Q: May I "buy" a development territory?
A: Yes. Baker Bros franchises through Area Development Agreements (ADA) for specific geographic areas. The terms of the ADA (including the number of restaurants to build and time requirements to have units opened) are determined by the available territory, including the potential for the area to support new restaurants, the number of restaurants in the agreement and the ease or difficulty of development within the specific area or municipality. Baker Bros will determine the potential for the area based on population, demographics, competition and other factors. Exclusive development agreements are still available in several markets around the country for existing multi-unit foodservice operators. back to top
Q: What kind of support can I expect from Baker Bros during the real estate and construction process?
A: We initiate a real estate market tour for each new franchise group that we bring on board. In addition, we have specific real estate criteria and a well-defined “Site Submittal Package” that a franchisee submits for each location they submit for approval. Once we receive the completed site package, it will be reviewed to determine acceptability of the site for a new location. An expert from the Baker Bros team will provide the franchisee with a full set of prototypical architectural plans and then assist the franchisee with building requirements and design and can make recommendations on potential contractors and architects in your area. back to top
Q: What other type of ongoing support does Baker Bros provide?
A: We will support our franchisees in a way that they are probably not accustomed to. We provide ongoing operational support and offer guidance on marketing and advertising, food costs, profit & loss statements, labor control and even management staffing. back to top
Q: What type of operations support does Baker Bros provide in conjunction with my first restaurant opening?
A: We require that at least three managers, including your Director of Operations, attend and graduate from the eight-week Restaurant Manager Training Program in our Dallas Training Center. There is no cost or fee associated with the cost of the in-store training; however, the franchisee is responsible for travel, lodging, meal expenses and miscellaneous expenses. Baker Bros will also provide up to four Trainers for on-site restaurant training for hourly employees and opening support for your first location. back to top
Q: I don’t have a foodservice background. Can I still franchise with Baker Bros?
A: Yes, prospective franchisees that do not have a multi-unit foodservice background still have the opportunity to franchise with Baker Bros. However, they must either have experienced, professional restaurant operators as a member of their team or hire a well-qualified Director of Operations with a history of successful multi-unit restaurant supervision to run the day-to-day operations of the restaurants. This allows the franchisee to focus on business aspects such as community involvement, marketing, real estate, finance, human resources, etc. back to top
Q: What are the franchise fees?
A: $25,000 per location. Franchise fees are due in full for the first three locations. For locations 4 and beyond, 50% is due at signing and the other 50% is due when the location opens. back to top
Q: What are the royalty and marketing fees?
A: Royalties are 5% of gross sales. Franchisees may be required to spend up to 2% in local store marketing. Currently, there is not a national ad fund, nor any local co-ops, and we have no plans to establish either in the near future. No marketing fees or ad funds of any kind are currently paid to Baker Bros American Deli. back to top
Q: How much profit can I expect from my Baker Bros restaurants?
A: Baker Bros provides a detailed Financial Performance Representation in our Franchise Disclosure Document (FDD) that provides full disclosure of Sales, Cost of Goods, Labor Costs, Controllable Expenses, Occupancy Expenses and EBITDA for our Company Stores. We also provide names and phone numbers of existing franchisees in the Franchise Disclosure Document (FDD). More Information back to top
Q: Does Baker Bros offer Master Opportunities where the royalties and franchise fees are shared with the Master Franchisee?
A: No. back to top