Determine these costs by tracking your expenses for a month and dividing that amount by the number of cakes you make. Overhead costs are designed to cover those things that you might not measure exactly, like powdered sugar for dusting the top of a cake, or parchment paper for lining the pans. This article will help you calculate and distribute your costs in six easy steps. In short, overhead is the anything that is part of the “cost of doing businesses.” Determining these costs will help ensure that you make enough money to cover your basic expenses with revenue from your cakes. Overhead costs are the expenses that don’t trace directly to your cakes but nonetheless are part of your expenses. Overhead costs, in particular, can affect whether your bakery business generates a profit or a loss. Although these ingredients are an important part of your bakery expenses, there are other costs you need to consider when picking a price for your homemade cakes. Some other franchise fees and charges may apply from time-to-time, and these are all detailed in our disclosure document.You know what goes into your cake recipes from eggs to extracts. Franchisees also invest 3% of weekly sales into our Marketing and Advertising fund. What are the ongoing fees?ĬOBS Bread charges franchisees an ongoing Royalty Fee of 7% of weekly sales. Ownership structures outside of a family relationship are reviewed and approved on a case-by-case basis. COBS Bread is open to other ownership structures where the main franchisee remains active in the management of his bakery or portfolio of bakeries. Owning a small business is hands-on, and our success can be attributed to active ownership. The COBS Bread model is based on sole ownership and family partnerships. Can I bring in an investor/business partner? This would be in addition to bank financing, and would be assessed on a case by case basis and require additional approvals. In some circumstances, COBS Bread may offer vendor financing to help bridge the gap. However, COBS Bread has established special packages with several major Canadian banks, and we can help you get in touch with our partners once you’ve been approved as a franchise candidate. It’s your responsibility as franchisee to secure financing for your bakery purchase, and we recommend talking to your financial adviser or preferred financial institution. If you don’t quite qualify, we’d still like to hear from you to discuss your passion for freshly baked bread and goals of COBS Bread business ownership, as we may be able to provide some financial assistance in some circumstances. For a new bakery purchase, this is approximately $250,000. You will require 30% of the total investment in cash or liquid assets, plus working capital. For new bakeries, we have a sweet deal for you – no initial franchise fee! What is the minimum amount that I need to put towards my franchise purchase? Submit an inquiry to learn more about a specific bakery location. The cost of an existing location can be anywhere from $500,000-$1,000,000+. The cost of a new location ranges from $750,000-$850,000. The initial investment depends whether you plan to purchase a new or existing bakery. What’s the initial purchase cost for a COBS Bread bakery? In most cases, your training bakery will be close to home, however there may be a need for some travel depending on your area. Your training will take place primarily in one of our operating bakeries, so you’ll be right in the middle of the action! We’ll match you up with a suitable training bakery, and that franchisee and their team – along with your Training Consultant and Area Manager – will teach you everything you’ll need to know about operating a successful COBS Bread bakery. Where will my franchisee training take place? The COBS Bread training program runs for 16 weeks, but can vary depending on how much time you need to be comfortable and confident in your baking, sales, and business management skills. This includes how to monitor and manage operations and finance, the full baking process, production planning, stock control, marketing, managing staff and wages, performance and recruitment management, occupational health and safety, and more. Throughout the program, our training consultants will teach you everything you need to know about managing your COBS Bread bakery franchise. We’ll give you a full baking education alongside comprehensive sales and business management training. COBS Bread franchisees are hands-on in all aspects of their business, including baking, however you don’t need to have any previous baking experience to own and run a COBS Bread franchise.
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