Purchase an Existing Great Harvest Bread Co. Bakery

Purchasing an existing bakery may be just the right option for you to become a Great Harvest franchisee. When current owners have made the decision to sell, we help facilitate the process for both buyer and seller. Although we're sad to see bakery owners leave the Great Harvest system, we also welcome the arrival of new franchisees, who almost always bring new ideas and loads of enthusiasm with them!

Purchasing an existing Great Harvest bakery (referred to as a "transfer") can present numerous advantages for the buyer, including inheriting an established customer base, brand recognition, generating cash flow from day one, a trained team of employees, known location, and recognized ties within the community. The application and approval process for someone purchasing an existing bakery is very similar to that of opening a new store. The major differences are listed below:

Bakery Financials: All financial information (including price) must come from the seller. Since the "for sale" status of a Great Harvest bakery is typically confidential, we ask that you not call the bakery directly. Instead, for bakery owner contact information, please contact Sally Munday at sallym@greatharvest.com or 800.442.0424 x 660.

Liquid Cash Needed: If pursuing a bank or Small Business Administration (SBA) loan, a typical requirement is 20% of the purchase price from liquid, unencumbered cash.

Initial Fee: Transfer transactions do not have the $38,000 initial franchise fee. Instead, there is a $19,000 fee with a $5,000 rebate. The $5,000 rebate is contingent upon updating outdoor signage (if applicable), completing required training and our receipt of materials returned from the seller. A laptop computer is not included with this fee, but is available for purchase separately.

Training: As with opening a new Great Harvest bakery, each person signing the Franchise Agreement must attend Dillon Learning Week. The remaining training, which is required by a minimum of one person on the Franchise Agreement, includes ten days of hands-on production training (five days at designated "host bakery" training site and five days of Bread Week in Dillon, MT) and a minimum of five days of seller training in the bakery being purchased. In addition, after the transfer of ownership has taken place, we will send a trainer to spend two to seven days with you at the purchased bakery, and follow-up with a second week of on-site training approximately 3-5 weeks after the initial training. Further training and on-going post-tracking support are also included.

Timing: The average length of time for completing the purchase of an existing Great Harvest bakery is three to six months.

Continuing Fee:* Buyers will sign our then-current Franchise Agreement, but keep the seller's Continuing Fee (a.k.a. "royalty"). However, the buyer will not inherit the seller's timeline for future royalty decreases. The timeline will reset.

If the royalty of the purchased bakery is at:

• 7%, the buyer's royalty will follow the same timeline as a new bakery
• 6%, the royalty will be 6% for the buyer's first 10 years, and, if conditions are met, 5% years 11-15 and, 4% for the following years
• 4% or 5%, the royalty will be 5% for the buyer's first 15 years and, if conditions are met, 4% for the remaining years of ownership
• 3% or lower, the royalty will be the same for the buyer and will not change over time.

*If the effective date of the seller's current Franchise Agreement is prior to Feb. 1, 2002, different rules may apply.

If you have additional questions, or would like to know if there is a bakery for sale in your area, please feel free to call or email Sally Munday at 800.442.0424 x660 or sallym@greatharvest.com.