This is one of the many reasons why franchising is good for those who wish to do business in the food and beverage industry. One such opportunity is with Kolache Factory, a chain store with numerous outlets that deal primarily in freshly made kolaches and Eastern European delicacies. Kolache Factory began in Houston Texas in 1982 and has expanded remarkably with 31 franchises operating across the United States by 2018.
The franchise product is a bakery-café with no analogs in the restaurant business, making it very attractive to potential owners. Nevertheless, in the course of this article, the following aspects that any interested and potential Kolache Factory franchise will need to consider shall be discussed, among others More specifically, these aspects shall include.
Table of Contents
About Kolache Factory
| Company Name: Kolache Factory |
| Founders: John and Jerri Banks |
| Established Year: 1982 |
| Headquarters: Katy, TX |
| Buisness Sector: bakery cafe |
| Food Items: Ham & cheese croissants, Korean beef croissants, Ranchero eggs, assorted fruit, muffins, cinnamon rolls, and various party trays. |
| Number of Outlets: Over 60 outlets |
| Official Website: Kolache Factory |
Kolache Factory was started in 1982 by husband and wife John and Jerri Banks. It has since transformed the traditional kolache, a pastry that originated in Eastern Europe. Since then, there have been improvements in the menu list, and Kolache Factory offers different types of savory and sweet filling to meet customers’ expectations. The special desserts, kolaches, are prepared daily to offer customers a tasty snack for breakfast, lunch, and in-between meals.
Some of the strengths include quality, new product offerings, and focused and satisfied customers. Kolache Factory has a well-developed concept for today’s client which is a warm bakery and a fast-food restaurant, which serves as the primary reason for investing in this company.
Key Details of Kolache Factory Franchise
| Brand Name: Kolache Factory |
| Industry: Food and Beverage / Cafe |
| Number of Outlets: 60+ |
| Franchise Fee: $44,900 |
| Total Investment: $450,000 to $710,000 |
| Profit Margin: 20% – 30% |
| Royalty Fee: 6% on Monthly Revenue |
| Space Required: 1,000 to 1,500 sq ft |
| Franchise Agreement:10 years |
| Franchise: Apply Here |
How much does a Kolache Factory franchise cost?
The costs required to establish the Kolache Factory franchise are $450,000 to $710,000 including Franchise Fees, Setup Costs, Equipment Costs, Initial Stock, working capital, and others. Here is the detailed cost breakdown of the Kolache Factory franchise:
| Franchise Fee | $44,900 |
| Setup Cost | $100,000 – $200,000 |
| Equipment Cost | $150,000 – $200,000 |
| Initial Stock | $50,000 – $100,000 |
| Working Capital | $30,000 – $60,000 |
| Lease/ Rent | $2,000 – $10,000 per month |
| Additional Cost | $50,000 – $80,000 |
| Royalty Fee | 6% of the gross revenue |
| Advertising Fee | 3% of the gross revenue |
| Liquid Cash Requirement | $200,000 |
| Net-Worth Requirement | $500,000 |
| Franchise Agreement Term | 10 Years, 5 Years Renewal |
| Total Investment | $450,000 to $710,000 |
Franchise Fee: $44,900 These are the licensing fees that I will make to Kolache Factory for the right to use its brand, recipes, and mode of operation.
Net-Worth Requirement: Every franchisee must have a net worth of at least $500,000. This is crucial in that, prospective owners, should demonstrate that they have the necessary capital to run the business and deal with any contingencies.
Liquid Cash Requirement: The proposed liquid capital requirements for franchisees are $200,000 or more. This way, the franchisor makes sure that he or she can balance daily functioning costs as well as solve emergencies without heavy losses.
Franchise Agreement Term: Kolache Factory franchise agreement term is 10 years, renewal 5 years.
Ongoing Fees:
Royalty Fee: 6% of the gross revenue
Advertising Fee: 3% of the gross revenue
These are continuing charges that help in funding the marketing and the operational infrastructure of the brand so that the franchisees can have access to the national campaigns and ongoing support.
How Much Is the Profit When Owning a Kolache Factory Franchise?
Franchise stores include Kolache Factory a brand franchise that is exhibiting promising returns on investment. Here is a breakdown of the revenue and profitability expectations:
| Revenue Potential Per Annum | $500,000 to $1 million |
| Profit Margins | 20-30% |
| Return on Investment (ROI) | 2 to 3 years |
| Monthly Profit | $10,000 to $30,000 |
Revenue Potential: Initial analysis of sales projections states that a Kolache Factory franchise’s annual sales should total between $500,000 and $1 million depending on the store’s geographical location and the amount of foot traffic. Business owners who place the machines within areas that receive high human traffic are assured of getting good incomes.
Profit Margins: Currently, a Kolache Factory franchise has an average of a 20-30% profit margin. This can however depend with the efficiency of the operation and location but is generally a good business venture.
Return on Investment (ROI): Normally, Kaminsky pointed out that the ROI for the Kolache Factory franchises hovers between 2 to 3 years, at most. This is relatively fast, especially when compared to other franchises of restaurants which may take longer to mature, this makes it a good business model for those who are seeking to make their money faster.
Monthly Profit: On average, the fresh Kolache Factory franchise makes a profit of between $10,000 to $30,000 depending on the region it is situated or the management skills used.
Why Should You Choose Kolache Factory Franchise?
At Kolache Factory, there is a defined business model over the years of its operation. Specifically, where it began to develop is associated with the food industry, and as a result, people already know about the existence of the brand, which is useful for new franchisees. Below are some key facts about owning a Kolache Factory franchise:
Unique Product Offerings: The menu at Kolache Factory consists of a sweet and savory kolache selection to meet the needs of a range of customers. It may be a breakfast kolache with an inside of sausage and eggs or a sweet one with an inside of fruit or cream cheese and so on, the differentiation attracts more customers.
Training and Support: The franchisee of Kolache Factory benefits from this training because the company offers extensive training. This includes 220 hours of work experience and 7 hours of instruction. What the training entails includes the day-to-day running of the business, preparing food, facilitating and servicing customers, future marketing techniques, and strategies. The company also provides franchisee support to ensure the sustenance of quality and satisfaction of the consumers.
Proven Business Model: As for the second criterion, Kolache Factory has a convenient and well-organized franchise system so that the franchisees will be able to manage their business effectively without fearing that many unseen details will bring them a lot of trouble. The company is established to have many franchises, over 30 to be precise, this goes to show that the company is fertile.
Brand Recognition: Associate with established brand franchisees of Kolache Factory to get the formula of brand popularity on their side. This serves to attract the right ‘kind’ of traffic, that is customers who already have expectations of quality food from the brand.
Marketing Assistance: Therefore, franchisees get to tap into the national advertising campaigns carried out by Kolache Factory. It also offers franchisees localized marketing solutions that depict the local markets that the organization seeks to penetrate compelling prospects to patronize franchisees.
Kolache Factory Franchise what are the Requirements
To qualify for opening a Kolache Factory franchise, there must be some requirements that the potential franchises have to meet, to show that they can properly manage the business. Below are the key requirements:
Eligibility Criteria:
Age: The franchisee should be above 21 years of age.
Experience: There are no requirements to have experience in the food industry but possessing good business sense and willingness to embrace the Kolache Factory business model are fundamental.
Financial Stability: A franchise must have a minimum capital of $500,000 worth of assets and a minimum liquid worth of $150,000 for financing of franchise investment and running expenses.
Space Requirements: Kolache Factory franchises are usually ost between 1,000 to 1,500 square feet of space for the kitchen area, dining area, and storage.
Location: The best pitch for the Kolache Factory franchise is typically in food complexes, metro stations, markets, or in commercial centers. The greatest attention should be paid to the occupancy of locations with the highest shopping frequency by the public.
Staffing Requirements: A common number of employees ranges from 6 to 8 people in order to manage a Kolache Factory franchise. These include: Kitchens, cashiers, and front-desk attendants among others. Some of the ways in which the company empowers employees to meet customer needs are discussed below.
List of Documents Necessary for Applying for a Kolache Factory Franchise
In order to franchise Kolache Factory, the potential franchisee must forward a number of documents to the company. The following are the documents that enable the franchisor to evaluate the suitability of the applicant. The required documents include:
| Franchise Application Form |
| Business Plan |
| Identification Proof |
| Address Proof |
| Legal Documentation |
| Franchise Agreement |
| GST Registration |
| Shop Act and Trade License |
How to Apply for a Kolache Factory Franchise?
The steps that are followed to open the Kolache Factory franchise are described as follows. Here are the steps:
Visit the Official Kolache Factory Franchise Website: Visit the Kolache Factory Franchise official website.
Download the Franchise Application Form: Fill in the form accurately with information about employment, income, and business experience.
Submit the Required Documents: Prepare all the franchise documents such as the application for franchise and business plan and a verification of financial capability and forward copies to the company.
Contact the Franchise Team: If you have more questions or have some difficulties with the application, you can contact Kolache Factory’s franchise team.
Wait for Response: Once the application has been submitted the company will review it and get back to the applicant for the next course of action.
Pros and Cons of Kolache Factory Franchise
| Pros | Cons |
| Established Brand: Kolache Factory’s experience is well documented, and there are currently 60 units in the United States. | High Initial Investment: Starting a Kolache Factory franchise can be costly, especially to potential franchisees with little capital invested. |
| Unique Product Offering: Bakeries and cafes are common in the market but Kolaches have a product that barely has a close substitute. | Location Sensitivity: Franchise location is one of the most critical determinants of success for franchises. If an organisation selects wrongly it’s location then it is capable of attracting low levels of customers. |
| Training and Support: Tremendous resources are invested in training and afterwards, assisting franchisees in Kolache Factory. | Competitive Market: Bakery and café is a competitive industry and thus franchisees need to ensure that they market themselves well in the market. |
| Profitability: Being able to boast one of the higher profit margins and the shortest payback period, Kolache Factory is a fascinating investment chance. |
Kolache Factory Franchise Image Gallery
Conclusion
Kolache Factory offers a profitable and original franchising opportunity to those who are considering becoming owners of cafes or bakeries. Being on the list of best franchises and satisfying consumers, having a loyal customer base, and sturdy financial growth, Kolache Factory is a good investment. The entry costs are high, but given the returns one will make from the food and beverage franchise business it is worth for one to invest.
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FAQs
How much is required to start a Kolache Factory franchise business?
The initial investment can go from $450,000 to $710,000, that involve the franchise fee, mechanical and physical facilities, equipment & supplies.
How much is the royalty fee current for the Kolache Factory franchises?
The stated ongoing royalty fee is at 6% of the gross revenue and additional 3 % of advertising royalty fee.
What is the average earnings of the Kolache Factory franchisee?
Currently, Kolache Factory franchises may earn between $500,000-$1,000,000 and have margins that range from 20%-30%.
What services does Kolache Factory offer its franchise partners?
Kolache Factory provides comprehensive training, operational and marketing support in addition to providing an established business model intended for the success of franchisees.
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