Published on 21 Jun 2022 Time 5 min read Last update by 14 May 2024

Paris Baguette Franchise Cost Is $1M and Makes $2M+ (2024)

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Paris Baguette franchise is a global baguette, croissant, cake in bread, and confectionary chain. Despite the French name, Paris Baguette is headquartered in Seoul, South Korea. The franchise is run by Cho Sang-ho and is the #1 bakery chain in South Korea. They have 150+ stores in the USA as of the start of 2024.

How Is Paris Baguette Franchise Positioned in the Food and Beverage Industry?

Paris Baguette Franchise

The Food and Beverage industry in the USA accounts for 13% of all manufacturing employment in the country. Around 1.46 million people are employed in this industry. Food franchises make up to 36% of the total franchise establishments in the USA, and it is expected to create 1.6million more jobs by 2027.

The annual growth rate in the industry is around 2% and the EBITDA multiplier is around 3x.

Paris Baguette competes in the Food and Beverage industry with brands like Aroma Espresso Bar, Illy, etc. It also competed with local bakeries and cookshops.

How Much Is a Paris Baguette Franchise?

The initial Paris Baguette Franchise Fee is $50,000. You have to pay this upfront fee when opening a Paris Baguette franchise.

Paris Baguette Franchise Cost

The estimated total investment necessary to begin the operation of a Paris Baguette Franchise ranges from $635,765 to $1,693,600. The following costs are part of the upfront costs included in the initial investment for a Paris Baguette. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Paris Baguette franchise in 2020.

Estimated Initial Investment

Initial Franchise fee $50,000 $50,000 Us Lump Sum Upon signing of the Franchise Agreement
Real Estate or Advance Rent and Security Deposit and other Prepaid Expenses and Costs $10,000 $60,000 Landlord or Real Property Owner As Required As incurred
Building Costs/Leasehold Improvements $250,000 $1,000,000 Third Parties (Your landlord, Architect and/or Contractor) As Required Before Opening
Equipment and Fixtures $165,156 $240,000 Us or Approved Suppliers As Required Before Opening
Signs $19,500 $49,000 Approved Suppliers As Required Before Opening
Smallwares $15,500 $25,000 Us or Approved Suppliers As Required Before Opening
Point of Sale System, Software and Surveillance Equipment $7,500 $14,000 Us or Approved Suppliers As required As Incurred
Opening Inventory $36,000 $48,000 Us or Approved Suppliers Lump Sum Before Opening
Grand Opening Promotion $10,000 $10,000 Us Lump Sum Before Opening
Licenses, Permits, Fees and Deposits $4,510 $18,710 Municipalities, utility companies or Lessor As Required Before Opening
Miscellaneous Expenses $11,159 $16,500 Us or Vendors and Approved Suppliers As Required As Incurred
Insurance $3,405 $4,890 Insurance Provider and Broker/Agent As Required As incurred
Attorneys’ Fees and Business Consultants $3,045 $7,500 Attorneys, Accountants, Business Advisors As Required As Incurred
Travel and Living Expenses While Training $20,000 $50,000 Airlines, Rental Car Agencies, Cafés, Hotels, etc. As Required Before Opening
Additional Funds for First 3 Months of Operation $30,000 $100,000 Us, Third Parties and Employees As Required As Incurred
Cost of Goods During Training $4,000 $4,000 Us/Vendors As Required Before Opening
TOTAL $718,065 $1,801,600

Paris Baguette Franchise Requirements

To start a Paris Baguette location, you need a net worth of at least $1.5 million with $500,000 in liquid assets.

Owning a Paris Baguette Franchise Requires Ongoing Fees

Royalty: 5% of weekly Gross Sales

Marketing Fee: 2% of weekly Gross Sales

Local Marketing: 1% of weekly Gross Sales

These fees are very close to the industry standard, with the average royalty being 5.3% and the average marketing fee being 2.3%.

How Much Do Paris Baguette Franchise Owners Make?


Subset Total No. of Cafés Average Sales Percentage of Cafés at or above Average Number of Cafés at or above Average Median Highest Lowest
Affiliate-Owned Cafés 17 $3,265,331 47% 8 $3,226,158 $5,254,510 $1,939,759
Franchised Cafés 85 $2,623,525 48.2% 41 $2,615,577 $6,973,760 $1,262,542
Affiliate-Owned and Franchised Cafés 102 $2,739,236 48% 49 $2,699,515 $6,973,760 $1,262,542

Paris Baguette Franchise

2023 Paris Baguette Median Franchise Sales : $2.6 million

Initial Investment (midpoint) %Profit Margin of Average franchise sales Estimated Profits Time to recoup investment
$1,250,000 10% $260,000 8 years
$1,250,000 15% $390,000 5.5 years
$1,250,000 20% $520,000 5 years

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Based on the median sales provided by Paris Baguette’s franchise locations, at an average of a 15% profit margin, it will take around 5.5 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 15% profit margin, which would elongate getting a return on your investment.

Many factors affect the sales, costs and expenses of your Franchised Store. Such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace. The presence of other bakeries and baked goods stores; the extent of market penetration and brand awareness that Paris Baguette stores have attained in your market. Also, the quality of management and service at your Franchised Store are factors.

How Many Paris Baguette Units Have Opened and Closed?

Systemwide Outlet Summary

Outlet Type Year Outlets at the Start of the Year Outlets at the End of the Year Net Change
Franchised 2021 52 68 +16
2022 68 98 +30
2023 98 137 +39
Company-Owned 2021 34 26 -8
2022 26 20 -6
2023 20 18 -2
Total Outlets 2021 86 94 +8
2022 94 118 +24
2023 118 155 +37

Over the last three years, the company has been expanding. Company-owned stores are closing, but franchised locations are increasing. Between 2021 and 2023, their outlets grew from 86 to 155!


Paris Baguette offers people the opportunity to be a part of a business that has high gross annual sales and a franchisor that has a strong global presence.

While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in the Food and Beverage Industry.

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