There are 194 listings in this section of the directory. 159 of them state a starting investment, ranging from $500 to $2,500,000, with a median of $193,500. Figures are franchisor-supplied and should be confirmed before you rely on them.
Coffee and bakery concepts look similar from the street and run very differently behind the counter. A coffee-led cafe is a beverage business: high gross margin per cup, fast service, and sales concentrated into a few hours of the morning. A bakery that produces on site is a manufacturing business with a retail front, which means earlier starts, more skilled labour, more equipment, and waste management as a daily discipline rather than an afterthought. Concepts that bake off frozen product sit between the two and are usually the simpler operation to staff.
The question that matters most in this category is where the product comes from. Some franchisors supply roasted coffee or frozen dough from their own facility at a margin, which is effectively a second royalty and should be counted as one when you model the business. Others let you buy on the open market within a specification. Ask for the landed cost per unit of the main inputs and compare it with what the same product costs independently.
Location economics are unforgiving here because the average transaction is small. A cafe needs volume, which means real foot traffic or a captive audience such as an office tower, hospital or campus. Be cautious about any projection for a site that depends on becoming a destination.
Based on the 159 listings here that state a starting investment. The other 35 give no figure, or give one that cannot be read as a number.
Head office locations for the listings on this page: Ontario (6), Quebec (2). Head office is not the same as where territory is available, so ask the franchisor which provinces they are currently granting.
A coffee-led cafe is generally the simpler operation. A bakery that produces on site is a small manufacturing business, with earlier hours, more equipment, more skilled labour and daily waste decisions. Concepts that bake off frozen product are easier to staff than full scratch production.
Whether you are required to buy coffee, dough or packaging from the franchisor or a nominated supplier, and at what price compared with the open market. A mandatory supply margin is effectively a second royalty and belongs in your model as one.
More than in almost any other category in this directory, because the average transaction is small and the business needs volume to work. Existing foot traffic or a captive audience such as an office tower, hospital or campus matters far more than square footage.
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