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The Bread Basket, Inc.
539 Northern Avenue
Signal Mountain, TN 37377
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Franchise Information


THE BREAD BASKET, INC.
Commonly asked questions and answers
About THE BREAD BASKET Franchise.
 
Q. What type of franchise is available?
A. THE BREAD BASKET, INC. offers you the opportunity to own and operate a BREAD BASKET franchise for the operation of specialty retail stores which feature gift baskets containing “hand-made” baked goods including breads, muffins, cakes, pies and confectionary bars. Qualified persons may own and operate a single Production Store, and possibly one or more Sales Stores.
Q. How much does the franchise cost?
A. The estimated initial investment to establish a THE BREAD BASKET ranges from $172,400 to $294,450. This includes a franchise fee of $20,000.
Q. How much is the fee for continuing support services?
A. The continuing services, or royalty fee, is 5% of your gross sales and is paid weekly. This fee entitles you to use of the “THE BREAD BASKET” service mark, use of our distinctive system, marketing assistance, ongoing business development and consulting, and other benefits that come with being a BREAD BASKET franchisee.
Q. Will I have an exclusive territory?
A. We will grant you a “Protected Territory”, which is outlined on a map for you. We will not establish a Company-owned unit or establish another franchise in your Protected Territory.
Q. What about advertising?
A. You are required to spend $5000 on grand-opening advertising during your first two months of operation. We will provide you with guidelines for your grand-opening advertising. Also, you will spend 1% of your gross sales a month on local advertising and promotion. In addition, once established, you may be required to contribute up to 1% of your gross sales to THE BREAD BASKET Advertising Fund designed to promote the overall brand image
Q. How much training is provided to you?
A. You will be required to attend an initial training course of approximately 80 hours over two weeks. The initial training will focus on various operational aspects of your store and include both classroom and on-the-job training. We provide this training to you as part of your franchise fee.
Q. What form of business start-up assistance and ongoing support will I receive?
A. For approximately two to four days around the time you open for business, we will furnish one of our representatives to provide on-site assistance. In addition, throughout the franchise term, we will provide operational assistance and guidance in various aspects of your BREAD BASKET Franchised Store. We will also loan you a copy of THE BREAD BASKET Confidential Operations Manual containing specifications, standards and procedures.
Q. What is the term of THE BREAD BASKET Franchise Agreement?
A. The term of the Franchise Agreement is 10 years from the date the Franchise Agreement is signed. Subject to the provisions of the Franchise Agreement, the franchise is renewable for four additional terms of five years each.
Q. What is my next step?
A. Complete the Confidential Franchise Evaluation Form and return it to us. If, after reviewing your qualifications, we feel you have the potential to join THE BREAD BASKET franchise system, you will be invited to meet with us in person. If you have any questions, in the meantime, please feel free to call us, Charlie & Marie Hyde at (423) 886-3387, or (800) 863-8380. We look forward to speaking with you soon.
 

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The Real Inside Scoop

Hello and thank you for your interest in the Bread Basket! This is a great opportunity to spend a few moments with you and tell you about our business. Hopefully, the information we provide will help you determine if applying for a Bread Basket Franchise is a wise life style decision for you.

Having run a fun and successful Bakery for 12 years, our decision to franchise was not made lightly. We wanted to grow The Bread Basket and extend our reach to other communities. We also felt that enhancing our shipping capabilities and expanding the use of the Internet were important elements in our growth. Underneath it all is a desire to grow the gift basket portion of our business. Our baskets of fresh baked breads and muffins have allowed us to become both a bakery and gift shop! We knew that Franchising was a serious step and would involve a deep level of commitment on our part. We wanted to give our Franchisees the same quality product and service that we have always given our customers. But we questioned ourselves…. Was our product line good enough? Was our system of operation sound? Did we have enough experience in the business to guide and support our Franchisees? Over and over again, the answer was “yes”! We were ready to go! Now the question is…..are you?

Wait! Before you answer, let’s take a realistic look at the level of commitment you must have after you have been awarded a Bread Basket Franchise. Brace yourself; you will be responsible for payroll, taxes, employee scheduling, inventory, rent, utilities, shipping, basket packing, baking, plus, keeping the customer happy! As the owner/operator, you must be able to coordinate all of these functions in order to run the business smoothly. While owning your own business sounds exciting, you can see, there is a ton of work involved.

First off, we hope you have tasted some of our breads and seen our gift baskets. Our signature product is a sweet Sour Dough bread. This is a horse of a different color, if there ever was one! It is made with a living culture, which is the agent needed to give the bread it’s rise. Working with living cultures is an intricate, time consuming process. Unlike regular yeast breads, changes in environment such as temperature and humidity will affect the finished product. The process of producing a single loaf of Sour Dough bread takes a total of 36 hours! Of course, this is done in well-orchestrated stages, which we will teach you. It is not difficult, but the care and “feeding” of your culture, or “starter” as we call it, is the key factor to your success. Be heartened by the fact, though, that it is this very process, and the outstanding product that you produce, that makes The Bread Basket a unique bakery.

You will be required to learn all the techniques of the Sour Dough mixing and baking in addition to the other products carried in our line. Your plate is full, no pun intended! It is important, therefore that you surround yourself with people who are as committed as you in growing your business. We strongly recommend that you have a “right hand man” to back you up, in addition to your regular staff. Owning your own business has it’s down side….you may be required to fill in for the night baker who didn’t show up for work. Are you physically able to mix dough in a 60 quart mixer, lift 50 pound bags of flour, and bake with 8 ovens all going at once? Oh, did we mention the dishes and clean up after all the mixing and baking was done? Yes, this is the American Dream, and you can be part of it!

If you can do all these things successfully, and you still have energy left, we suggest you go up to the front counter. There you will find your sales staff selling the very products you have been slaving over! When you hear your customers exclaim how good the Cream Cheese Muffin is, or how much their parents enjoyed the gift basket they received, deep in your heart you will know you have made the right decision to own your own business. You worked the plan, produced the product and reaped the rewards. It is simply not possible to work for someone else and receive that form of gratification.

In addition to our bread line, we carry muffins, cakes, pies and other bakery products. The breads and muffins are the main contents of our gift baskets, which we deliver locally, and ship nationwide. It is our intent to grow the gift basket portion of our business through increased advertising and Internet sales. The potential for growth, through shipping, is outstanding!

We project your initial investment to be between $172,400.00 and $294,450.00, depending on the size store you wish to open, the amount of work you do yourself, and the mix of new and used equipment you purchase. We recommend between 2,500 to 5,300 square feet to accommodate your kitchen and retail outlet. The square footage of your baking facility should be based on the number of other retail stores (if any) you may wish to operate in your protected territory.

To help you get started, we provide assistance with site selection, store lay out and equipment requirements. You are given a comprehensive Operations Manual and two weeks of extensive training at our Signal Mountain location. Training will cover Bookkeeping, Computer Order Entry, Customer Service, Gift Baskets, Shipping and of course, Kitchen Procedures and Baking. These support services are provided to you after the Franchise Fee of $20,000.00 is paid to us. (This figure is included in your estimated investment costs.) We are also on site prior to, during and after your initial store opening to offer guidance and lend a helping hand.

Ongoing support will come in the form of new products, tested and refined in our kitchens, advertising and public relations promotions, new gift ideas and regular on site visits. We are available during regular business hours to answer any questions you may have on operations or production.

Unfortunately, we cannot predict or guarantee your level of success as a Bread Basket Franchisee. We cannot tell you how much money you will make the first year; the second or even five years down the road. We can, however, provide you with a system of operation that has been twelve years in the making. You must provide the time, energy, as well as capital, to make it a success. You need to be a visible member of your community or neighborhood. You must be willing to be a hands-on owner in order to reduce your labor costs and increase profitability. And last, but most important, you must be a people person. We are a “feel good” business and your gift for making folks comfortable and welcome in your store will insure your success. This feeling starts with you, filters down through your employees and is enjoyed by your customers.

We will give you the recipe for a quality product and the ingredients for outstanding customer service; it will be your job to bake up a successful Bread Basket Franchise! We invite you to apply today.

 


Copyright © 2001 The Bread Basket, Inc.
539 Northern Avenue, Signal Mountain, TN 37377
1-800-863-8380

These pages do not constitute an offer for a sale of a franchise. An offer can only be made by delivery of a Uniform Franchise Offering Circular by a qualified Bread Basket® representative.
 


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