La Madeleine
La Madeleine offers bakery and express cafes serving fresh pastries, gourmet coffee, and French-themed meals. Known for its authentic French cuisine and baked goods, it operates in the competitive quick-service restaurant sector.
La Madeleine franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a la Madeleine Café in a 'Bakery Café' prototype format is $1,230,360 to $2,254,160. For an 'Express Café' prototype format, the range is $448,250 to $856,353 [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the location type. For a traditional location, it is $40,000, while for a non-traditional facility, it is $20,000 [p.14]. This isn't specified in the excerpts for other types of locations.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Gross Sales [p.88], paid weekly via a direct debit program established by the franchisor [p.19]. The franchisor has full discretion over directing all advertising, media placement, marketing, and public relations programs financed by the Brand Marketing Fund, which includes various costs such as production of promotional materials and sponsorship of events [p.106].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement is not specified in these excerpts. Regarding renewal, according to [p.216], the franchisee must give written notice of its intention to renew at least six months but not more than nine months before the end of the initial term.
Can I sell or transfer my franchise, and what does that require?
You can transfer your right to develop and operate a Café to any of your affiliates who will then become the franchisee under the Franchise Agreement. This requires maintaining direct control over the Franchisee and obtaining prior written consent from the franchisor [p.54, p.180]. Additionally, you may sell or assign up to 20% of your business entity's equity to employees without prior written consent, provided certain conditions are met, including notification to the franchisor [p.180]. This isn't specified in the excerpts for transfers involving non-affiliates or employees beyond a 20% threshold.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if the franchisee fails to open the café within 16 months after signing the Franchise Agreement [p.40], or if the franchisee does not meet the development schedule outlined in a Development Agreement [p.40]. Additionally, termination is permitted on any grounds available by law [p.333]. This isn't specified in the excerpts for other specific grounds of termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you must have sufficient capital, financial, and operational resources to purchase the Restaurants. Specifically, at least one of your owners' initial investment in the franchise should be more than an unspecified amount (refer to [p.225]). Additionally, you or one of your affiliates or parent needs to have been in a similar business for at least five years with a net worth of at least an unspecified amount ($__,000,000). You will also need to provide detailed financial information as requested by La Madeleine [p.225].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under either the Franchise Agreement [p.50] or the Development Agreement [p.51]. However, you are provided with a Protected Area where new la Madeleine Cafés will not be established by the company while the agreement is in effect [p.50, p.51]. This Protected Area typically covers a radius of three miles from your premises but can be smaller in urban areas [p.50]. Additionally, you have exclusive rights to provide catering services within this Protected Area [p.52].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training to the franchisee's designated General Manager, which includes training other employees as needed to open and operate the café in accordance with the standards. This initial training is included in the initial Franchise Fee except for travel and hotel expenses. Additionally, LDAMC offers ongoing support including menu management, system upgrades, help desk and technical support services, and new restaurant opening services [p.9, p.162].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were a total of 62 franchised outlets (51 Bakery Cafés at Traditional Locations and 11 la Madeleine Cafés at Non-Traditional Facilities) operating. During the last fiscal year, 1 franchised Bakery Café permanently closed, and 3 were sold and became corporate cafés. Additionally, 1 la Madeleine Café that opened in 2024 did not operate throughout the entire period. This isn't specified in the excerpts for the exact number of terminations but indicates that there was one permanent closure among the franchised outlets. [p.70, p.69]
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if it has a reasonable basis for the data [p.65] and may offer actual records of an existing la Madeleine Café outlet upon purchase [p.71]. However, the franchisor does not make any financial performance representations other than those included in Item 19 of the FDD, nor do they authorize their employees or representatives to make such representations [p.71] [p.149].
What am I restricted to selling, and where must I buy supplies?
You are required to sell products as specified by the franchisor, including food, beverages (including alcoholic beverages), and other items listed on the menus and signs provided. You must use designated and approved suppliers for items such as food and beverage products, ingredients, packaging materials, equipment, furniture, and supplies [p.37]. This may be limited to and/or include the franchisor, its affiliates, or other specified exclusive sources [p.37].