|Single Site Bakery Cafe||Bakery Cafe Hub||Cafe Spoke||New Hub & Spoke Combined|
|Avg. Unit Volume||$776,575*||$996,130***||$565,823***||$1,578,018****|
|Avg. Margin of EBITDA||16.19%**||NA||NA||16.72%****|
|Sq. Ft. Build Targeted||2400||2500||1700||NA|
|Target Cost to Build||$401,557*****||$401,557*****||$189,181*****||NA|
View footnotes for disclaimers
Our current format includes both bakery cafe “Hubs,” and cafe-only “Spokes.” Both stores offer a full cafe menu and seating for 35-40. Bread is handmade from freshly milled wheat at the Hub locations. Bread is delivered to each Spoke from the local Hub (within 30 minutes) while they make other items from scratch on-site at the Spoke. This allows multi-unit owners to leverage their bakery investment and own entire territories by putting smaller footprint stores (Spokes) in ideal high traffic areas on Main Street.
Footnotes for financial chart above:
* Based upon 2018 sales for 24 single site bakery cafe locations as disclosed in item 19, Chart 1, of our 2/18/2019 FDD. Of these 24, 7 or 29%, exceeded the average unit volume.
** Based upon 19 single site cafe locations that provided their 2018 income statements, as disclosed in item 19, Chart 4, of our 2/18/19 FDD. Of these 19, 10 or 53%, exceeded the average EBITDA Margin.
*** Bakery Cafe Hub and Cafe Spoke 2019 sales based on 3 locations each as disclosed in item 19, Chart 2 of our 2/18/19 FDD. Of this total of 3 hubs, 1 or 33%, exceeded the average unit volume of $996,130. Of this total of 3 spokes, 1 or 33%, exceeded the average unit volume of $565,823.
****In 2018, there were 6 new concept bakery cafes consisting of 3 sets of 1 bread-baking (hub) location with 1 non-bread-baking (spoke) location each (for a total of 6 bakery cafes). Of these 3 sets, (i) 1, or 33%, exceeded the average sales volume of the 3 sets of $1,578,018 (ii) 1, or 33%, exceeded the average variable costs of the 3 sets of $1,025,606, (iii) 2, or 67%, exceeded the average fixed costs of the 3 sets of $277,248, (iv) 1, or 33%, exceeded the average total operating expenses of the 3 sets of $1,314,117, (v) 2, or 67%, exceeded the average net operating income (profitability in dollars) of $263,901, and (vi) 1, or 33%, exceeded the average net operating income (profitability as a percentage of sales) of 16.46%.
There is no assurance that you will do as well and you must accept that risk. This offering is made by prospectus only.
*****Based upon Item 7 of our 2/18/19 FDD
This information is not intended as an offer to sell, or the solicitation of an offer to buy a franchise. It is for informational purposes only.
Currently, the following states regulate the offer and sale of franchises:
California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
If you are a resident of, or wish to acquire a franchise to be operated in one of these states, we will offer you a franchise only after we have complied with applicable pre-sale registration and disclosure requirements in your jurisdiction. We are accepting applications from all states.