Paris Baguette Franchise Cost, Profit, & Failure Rate 2024

Paris Baguette is a rapidly growing bakery franchise that has become well-known for its delicious and unique pastries, cakes, sandwiches, and more. Founded in 1988 by Shin Seon-ho in Seoul, South Korea, the brand quickly spread throughout Asia before coming to the United States in 2016.

With over 3,000 stores worldwide, Paris Baguette is now one of the most recognizable bakeries on the planet.

In this article, we will cover everything you need to know about franchising with Paris Baguette, including Franchise Fees, Profit potentials, Total Investment requirements, Training programs offered, and any restrictions or renewals that may be necessary when considering opening your store.

Additionally, we will highlight what type of returns you can expect when investing in a Paris Baguette franchise. With this information, you’ll be able to make an informed decision about whether or not this is the right business opportunity for you. Let’s get started!

Paris Baguette Franchise

About Paris Baguette Franchise

Paris Baguette is a rapidly growing international franchise specializing in French-style pastries and bread. Founded in 1988, the company has more than 2,800 locations worldwide and plans to expand further in the coming years.

The business model calls for small shops with limited seating, which makes it ideal for bustling urban areas where space is at a premium. As its network of stores continues to grow worldwide, so does its reputation as one of the leading purveyors of French-style baked goods.


History Of Paris Baguette

Paris Baguette is a South Korean bakery chain founded in 1988 by Cho Young-Kil and Choi Jae-Yeol. It was initially named Paris Croissant, but the name was changed to Paris Baguette in 1993 due to the popularity of French baguettes.

The brand has since grown exponentially, becoming one of the most recognizable bakery chains in South Korea.

Paris Baguette specializes in French-style bread, pastries, cakes, sandwiches, and beverages. It is the country’s largest chain of its kind, with over 3,500 stores as of 2021. Paris Baguette has also expanded overseas to numerous countries, including the United States, China, Vietnam, and Japan.

In addition to traditional bread and pastries such as croissants and baguettes, Paris Baguette offers a variety of healthier options such as whole wheat bread and low-calorie cakes. The company has also recently launched vegan and vegetarian options at some locations.


Paris Baguette Franchise Model

Cost or FeeAmount or Percentage
 Initial Investment$378,270-$1,638,554
 Franchise-Fee$50,000
 Royalty-Fee5% of Weekly gross sales
 Liquidity$500,000
Total Outlets4000

Profit & Revenue of Paris Baguette

The profit and revenue of Paris Baguette highly depend on the location, operating expenses, and more other factors.

According to the research, a Paris Baguette franchise generates $1,617,000 in revenue per year. And as per a profit margin of 15%, a Paris Baguette franchise owner make $242,550 in annual profits on average.

This is how we calcultated the profit:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1617000.00
Cost of Goods Sold (COGS)26.56%429515.63
Salaries21.25%343612.50
Labor (Variable)13.81%223348.13
Rent10.63%171806.25
Franchise Royalty Fees5.31%85903.13
Insurance5.31%85903.13
Utilities2.13%34361.25
Total Expenses85.00%1374450.00
Net Profit15.00%242550.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Training & Support Of Paris Baguette

Training & Support Of Paris Baguette

Paris Baguette franchise has two phases of training. One is a classroom-based training consisting of approximately 311 hours, and the second is based on on-the-job training at a minimum of three cake decorations.

They are also required to attend mandatory ongoing training, which may occur up to 12 times yearly.

They also conduct seminars or convections from time to time for the benefit of all franchisees.

The classroom training happens at Moonachie, New Jersey, training center.

On-the-job training occurs at the franchisor’s training locations in the USA that the franchisor designates during the term.


The Failure Rate Of Paris Baguette Franchise

Systemwide Outlet Summary

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20192638+12
20203852+14
20215268+16

For the Franchised outlets:

  • In 2019, the growth rate was (12)/26×100≈46.15%
  • In 2020, the growth rate was (14)/38×100≈36.84%
  • In 2021, the growth rate was (16)/52×100≈30.79%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20194944-5
20204434-10
20213426-8

For the Company-Owned outlets:

  • In 2019, the failure rate was (5)/49×100≈10.20%
  • In 2020, the failure rate was (10)/44×100≈22.73%
  • In 2021, the failure rate was (8)/34×100≈23.53%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20197582+8
20208286+5
20218694+8

For Total outlets:

  • In 2019, the growth rate was (8)/75×100≈10.66%
  • In 2020, the growth rate was (5)/82×100≈6.09%
  • In 2021, the growth rate was (8)/86×100≈9.3%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Paris Baguette grew from 2019 to 2021, showing a growth rate between 46.15%% and 30.79%. On the other hand, for company-owned outlets, the failure rate of Paris Baguette was quite high, lying in the range between 10.20% and 23.53% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Paris Baguette franchise has expanded in the years 2019-2021 showing a total growth rate between 10.66% and 9.3%.


Payback Period Of Paris Baguette Franchise

With investment of $1,164,682 and an estimated profit margin of 15% on the average revenue, the yearly profit would be $242,550.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $1,164,682 / $242,550= 4.8 years

Based on these figures, it will take approximately 5 years to pay back the initial investment for Paris Baguette. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Term Of Agreement & Renewal

The length of the initial franchise term is ten years from the opening date.

The franchisor can renew the term for two additional five years each if the requirements are met.


How Much Does A Paris Baguette Franchise Make?

Several aspects determine the profitability of the Paris Baguette franchise.

Profit varies depending on the investment size, expenses, and demand for the product.

As we all know, Paris Baguette has already earned goodwill in the market, so there is a good possibility that revenue must be higher. 

Here is a table showing how much a Paris Baguette franchise makes based on the average sales:

20202021
Highest $3,509,758$5,255,056
Median$1,528,360$2,225,991
Lowest$368,030$704,623
Average Sales$1,599,355$2,244,757

The bakery franchise market offers several opportunities for entrepreneurs, such as franchises from Panera Bread, Nothing Bundt Cakes, Hurts Donut, Cinnabon Franchise, and 85 °C Bakery.


Paris Baguette Comparison

CompanyParis BaguetteCinnabon
Founded In19881985
Initial Investment$378,270-$1,638,554$23,100-$430,900
Franchise-Fee$50,000$30,000  
Total Outlet40001,100
Annual Revenue$1.5 Billion$143 million 

Frequently Asked Question

How many Paris Baguette Franchise locations are there?

Currently, Paris Baguette has more than 4,000 franchise locations worldwide.

Is Paris Baguette Chinese?

No, Paris Baguette is a Korean brand.

Is Paris Baguette a franchise?

Paris Baguette is a famous bakery café franchise brand. Currently, it has over 3,600 retail stores in South Korea and 99 in the United States.

How much does a Paris Baguette franchise cost?

The franchise fee for Paris Baguette is $50,000, and their investment cost ranges from $378,270 to $1,638,554.

Who is the Owner of Paris Baguette?

The SPC Group, a South Korean food and hospitality company, owns Paris Baguette. The SPC Group operates several subsidiaries in various industries, including Paris Baguette, a French-style bakery with over 2,800 stores worldwide.

Where is Paris Baguette headquartered?

The headquarter of Paris Baguette is in Seoul, South Korea.

Who founded Paris Baguette?

The Paris Baguette bakery chain was founded in the year 1988 by Korean businessman Hur Young-in.

How many locations does Paris Baguette have?

Paris Baguette operates in more than 4000 stores globally.

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