The Biggest Thing To Know Before Buying A Panera Bread Franchise

Panera Bread has become a beloved bakery chain across the United States since it first opened its doors as the St. Louis Bread Company in 1987. There are already over 2,220 locations spread around the country, but if your love for the bacon turkey bravo or broccoli cheddar soup is really that strong, you can actually apply to be a franchise developer with the company. However, there is a catch: Panera Bread doesn't sell singular cafés. Instead, it sells entire market areas. 

So if you sign on, you have to commit to opening a number of locations in your area, and the figures are pretty hefty. According to the Panera Bread website, a developer needs to commit to an "aggressive" schedule that typically entails opening about 15 cafés over a period of six years. They also have to prove that they're up to the task by presenting evidence of previous success as a restaurant operator across multiple outlets.

As if that wasn't enough, you also need to be considered a "top restaurant operator," according to Panera Bread's website. The company doesn't specifically reveal what this means, but you need to be worth at least $7.5 million. Of that money, $3 million needs to be available as liquid assets, which basically means you can get it in cash very fast. It's chunk change, really.

Real estate experience in the market you want to open the cafés in is also a requirement, and this makes sense. After all, you'll want to know where the best place to build your locations will be and also have to figure out leasing land and meeting the specifications required by Panera Bread. The company doesn't outline exactly what the initial fee is for a franchise, but online sources like eFinanceModels suggest that it's around $35,000. There will also probably be a recurring royalty fee, and you'll have to give the company a certain percentage of your revenue. You'll also have equipment and supply costs and lots of other fun bills to deal with.

But you can make some good money if you're successful. The median gross sales of a Panera Bread franchise are estimated to be about $2.8 million by Vetted Biz. If it still sounds like a good idea, you can always get in touch with the company — just don't expect any soup in return any time soon. Thankfully, there's always Panera's store-bought options while you wait to get through the vetting process.