Bimbo Foods Bakeries Distribution Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Bimbo Foods is a direct-store-delivery distribution franchise for branded baked goods such as Sara Lee and Entenmann's. Franchisees own protected delivery routes, restocking retailer shelves and managing inventory and accounts rather than running a storefront.
FranchiseVerdict summary · 2026
A Bimbo Foods Bakeries Distribution franchise requires a total initial investment of $14K – $607K, including a $8K – $500K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $14K – $607K
- 0th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 6,957
- 96th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $14K – $607K including a $8K franchise fee.
- RETURNSBFBD states total revenue was $3.633 billion in its most recent fiscal year, of which 100% was from required product purchases by Distributors. Financial statements attached are for parent Grupo Bimbo (in Mexican pesos).
- RISKVerdict A (Strongest tier), verdict score 74/100 (higher is better).
- LEGAL57 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Bimbo Foods Bakeries Distribution, LLC
- Parent company
- Bimbo Bakeries USA, Inc.
- Ultimate parent
- Grupo Bimbo S.A.B. de C.V.
- Predecessor
- George Weston Bakeries Distribution, Inc. (formerly Bimbo Bakeries Distribution, Inc.)
- Prior franchisor entity
- CEO title
- President
- Tony Gavin
- Incorporated in
- DE
- HQ
- 355 Business Center Drive, Horsham, Pennsylvania 19044
- Auditor
- Mancera, S.C. (A Member Practice of Ernst & Young Global Limited)
- Audited financials
- Franchisor revenue
- $408K
- vs $400K prior year
Independent franchisee associations
- National Owners Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- of BBUSA
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Tony Gavin
- Headquarters
- PA
- Founded
- 1996
- FDD year
- 2025
- States available
- 48
Can you afford it, and what does the money buy?
Entry cost runs 53% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown7 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Feenot refundable | $8K | $500K | |
| Additional Funds / Working Capital for General Operationsnot refundable | $2K | $7K | |
| Opening Inventory | $3K | $15K | |
| Vehiclenot refundable | $0 | $80K | |
| Hand-held Computer Ordering Systemnot refundable | $1K | $2K | |
| Initial Insurance Coveragenot refundable | $500 | $1K | |
| Incorporation Services | $350 | $2K | |
| Total initial investment | $14K | $607K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $14K – $607K
- Top 40% of category vs category
- Liquid capital req'd
- $2K – $7K
- Top 40% of category vs category
- Franchise fee
- $8K – $500K
- Top 40% of category vs category
- Royalty
- No royalty fee; franchisor revenue is derived from the ma…
- Ad fund
- -n/d
- Total fee load
- 19.8%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $19 |
| Transfer fee | $2 |
| Inventory (initial) | $3K – $15K |
| Total fee load | 19.8% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Bimbo Foods Bakeries Distribution did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Bimbo Foods Bakeries Distribution unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
31%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
BFBD states total revenue was $3.633 billion in its most recent fiscal year, of which 100% was from required product purchases by Distributors. Financial statements attached are for parent Grupo Bimbo (in Mexican pesos).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 19.8% — above the Quick-Service Restaurants average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System roughly stable (+4.2% 3-year CAGR) with 6,957 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Bimbo Foods Bakeries Distribution Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6,957
- Opened
- 2,968
- Last reporting year
- Closed
- 142
- Terminated
- 152
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.6%
- Company-owned
- 503
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (3-yr)
- +4.2%
- Net unit change over 3 years
- 3-yr CAGR
- +4.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2,968
- Closed (3yr)
- 142
- Terminated (3yr)
- 152
- Non-renewed (3yr)
- 2
- Transfers (3yr)
- 352
- Reacquired (3yr)
- 2,753
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 49 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
This is a high-risk opportunity with a franchisor in potential financial distress, substantial unresolved litigation, undisclosed financial metrics, and stagnant unit growth — avoid unless extensive independent validation is conducted.
Litigation (Item 3)
57 total disclosed cases including misclassification class actions, breach of contract disputes, route valuation disputes, and regulatory enforcement (Maryland Consent Order). 6 cases pending as of April 2025; 51 concluded. Largest settlements include $14.5M class settlement (Kaewsawang CA IBPs). BFBD was defendant in substantially all cases; BFBD was plaintiff in case 15 (R.J. Wajert right-of-first-refusal enforcement).
Largest disclosed settlement: $14,500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Mancera, S.C. (A Member Practice of Ernst & Young Global Limited)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 74 / 100 verdict
- 01HIGHGoing Concern status is FALSE — indicates the franchisor may have substantial doubt about ability to continue operations
- 02HIGHSignificant litigation involving misclassification, labor law violations, fraud, and deceptive trade practices suggests systemic operational or legal problems
- 03MEDExtreme investment range ($14K-$606K) with no disclosed average revenue or net income makes ROI assessment impossible
- 04MINORRoyalty fee structure unknown — hidden or variable fees could dramatically impact profitability
- 05MINORStagnant unit growth (1.1% YoY on 6,957 units) indicates system is barely expanding and may be declining when accounting for closures
- 06MINORNo Item 19 financial performance disclosure prevents validation of franchisee earnings claims
- 07HIGH$0 franchise fee combined with going concern status suggests franchisor may be desperate to recruit franchisees
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 19.8% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 14 days |
| Transfer requires consent | Yes |
| Termination notice | 3 days |
| Mandatory arbitration | Yes |
| Arbitration location | In or near the county in which the Distributor operates (or mutually agreed-upon location) |
| Jury trial waiver | Yes |
| Governing law | PA |
| Litigation count | 57 |
View Item 3 litigation summary
57 total disclosed cases including misclassification class actions, breach of contract disputes, route valuation disputes, and regulatory enforcement (Maryland Consent Order). 6 cases pending as of April 2025; 51 concluded. Largest settlements include $14.5M class settlement (Kaewsawang CA IBPs). BFBD was defendant in substantially all cases; BFBD was plaintiff in case 15 (R.J. Wajert right-of-first-refusal enforcement).
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- No mandatory training; optional orientation sessions may be offered at various times.
- Ongoing training
- Optional
- Site selection
- Franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Hand-held computer ordering system (handheld + printer)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Hand-held computer ordering system (handheld + printer)
Item 20 · call current owners
Franchisee Contacts
6,533 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Bimbo Foods Bakeries Distribution · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Bimbo Foods Bakeries Distribution franchise?
The total investment to open a Bimbo Foods Bakeries Distribution franchise ranges from $14K – $607K, with an initial franchise fee of $8K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Bimbo Foods Bakeries Distribution franchise owners earn?
Bimbo Foods Bakeries Distribution does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Bimbo Foods Bakeries Distribution FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Bimbo Foods Bakeries Distribution FDD and qualifies whose outlets they describe.
What is Bimbo Foods Bakeries Distribution's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Bimbo Foods Bakeries Distribution (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Bimbo Foods Bakeries Distribution franchise locations are there?
As of their most recent FDD filing, Bimbo Foods Bakeries Distribution has 6,957 total units in the United States, including 6,454 franchised units and 503 company-owned units. 2,968 new units were opened in the latest reporting year.
Is Bimbo Foods Bakeries Distribution a good franchise to buy?
FranchiseVerdict rates Bimbo Foods Bakeries Distribution as a A-grade franchise with a verdict score of 74 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.