Great Harvest
Great Harvest offers bakery cafes featuring fresh whole wheat bread and other menu items. Known for high-quality, health-conscious food options, it operates in the casual dining and bakery café sector.
About Great Harvest
The Great Harvest Bread Company is a franchise in the United States that sells fresh-baked bread and other items.
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Great Harvest franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Great Harvest franchise ranges from $298,145 to $979,639. This includes $35,000 that must be paid to the franchisor as specified on page [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 [p.10, p.64]. This fee is fully earned by the company at the time the franchise agreement is signed and is not refundable under any circumstances [p.10, p.64].
What are the ongoing royalty and advertising fees?
The franchisee must pay a royalty fee of 5% of gross sales [p.64] and a minimum of 1% of gross sales or $500 per month on local advertising activities in the territory, whichever is greater [p.79].
How long is the initial franchise agreement, and can I renew it?
The term of the initial franchise agreement and renewal options are not specified in the provided excerpts. This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires payment of a transfer fee. For transfers to an existing franchisee in good standing, the fee is 50% of the initial franchise fee. Transfers to add a business entity or new shareholder without changing management control incur a $1,500 fee. Transfers due to death or permanent disability of the Franchisee or Principal require a $3,500 fee. [p.88] Additionally, the franchisor can refuse transfer for good cause, which is not defined in these excerpts but may include exercising a right of first refusal. [p.202]
On what grounds can the franchisor terminate the agreement?
According to [p.209], the franchisor may terminate the agreement on any grounds available by law. However, under [p.217] and [p.202], termination must be for good cause, which includes the franchisee's failure to comply with lawful provisions of the franchise agreement and cure such failure within a reasonable time frame, typically no more than 30 days.
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor requires that if their most recent financial statements are unaudited and show a net worth of less than $100,000, you have the right to request an escrow arrangement [p.203]. However, specific requirements for your personal net worth or liquid capital are not detailed in these excerpts. This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory unless you sign the Multi-Unit Development Agreement, in which case you would have an exclusive development territory for the outlets you develop under that agreement. However, this exclusivity is contingent on your compliance with the agreement and its development schedule. Additionally, even if you have a Territory defined by the Franchise Agreement, it does not grant you any exclusive customer base, and Franchisor retains the right to open, operate or franchise Great Harvest outlets around, bordering, and adjacent to your territory [p.29, p.62].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training overseen by Jeff Evans, Director of Bakery Cafe Training, and additional training from various experienced individuals at their corporate office. On-site remedial training is also available upon request [p.67]. Ongoing support includes services for site selection, architectural plans, interior design, training, marketing, sales techniques, and opening assistance [p.161].
How many franchised outlets are there, and how many have closed or been terminated?
At the close of the most recent fiscal year, there were 49 Great Harvest Bakery Cafe outlets in operation. According to [p.54], if a franchisee has had an outlet terminated, canceled, not renewed, or otherwise ceased operations, their information is listed in Exhibit F. However, the exact number of closed or terminated outlets is not specified in the provided excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, either orally or in writing [p.42]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet [p.40].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling products and services in the manner prescribed by the franchisor. You may sell through your Franchised Business premises orders received via the franchisor's approved online ordering platform or third-party delivery applications, fulfill mail-order sales only to addresses within your Territory, and maintain wholesale accounts with local distributors such as farmers' markets, food cooperatives, and specialty retailers in your Territory or a surrounding area not covered by another franchise. You must buy all equipment, furniture, fixtures, ingredients, supplies, and services from the franchisor's approved suppliers or in accordance with their specifications [p.20, p.33].