Bimbo Foods Bakeries Distribution Franchise Cost, Revenue & Review 2026
- Investment
- $14K – $607K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
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. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $14K – $607K
- 0th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- Not extracted
- 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 median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 69/100 (higher is better).
- GROWTHPositive: net +73 franchised outlets in the latest year (2,968 opened, 142 closed) (Item 20).
- LEGAL61 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 11 name the franchisor itself, 4 its parent, affiliates or predecessor. Pending claims are allegations, not findings.
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.
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Grupo Bimbo S.A.B. de C.V.
- FDD Item 1, page 9 of the 2025 FDD
- 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
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 36% 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Bimbo Foods Bakeries Distribution unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Bimbo Foods Bakeries Distribution Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 152
- Not renewed
- 2
- Transferred
- 352
- Reacquired
- 2,753
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
6,533 current owners across 49 states.
- TX 1,175
- FL 743
- NC 403
- GA 402
- NY 382
- AZ 314
- CA 223
- SC 217
- PA 187
- TN 180
- AL 171
- VA 162
- +37 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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)
Item 21 attaches the audited consolidated financial statements of the parent, Grupo Bimbo, S.A.B. de C.V. and subsidiaries, stated in MILLIONS OF MEXICAN PESOS (2024 net sales Ps. 408,335 million; 2023 Ps. 399,879 million). No US-dollar figures are stored from them (owner ruling R30, 12 Sept 2026: no cross-currency number is presented as dollars). The $3.633 billion shown as total revenue is Bimbo Foods Bakeries Distribution's own Item 8 statement of its most recent fiscal-year revenue, 100% from required product purchases by Distributors.
ⓘ 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 69 / 100 verdict
- 01HIGHSignificant litigation involving misclassification, labor law violations, fraud, and deceptive trade practices suggests systemic operational or legal problems
- 02MEDExtreme investment range ($14K-$606K) with no disclosed average revenue or net income makes ROI assessment impossible
- 03MINORRoyalty fee structure unknown — hidden or variable fees could dramatically impact profitability
- 04MINORStagnant unit growth (1.1% YoY on 6,957 units) indicates system is barely expanding and may be declining when accounting for closures
- 05MINORNo Item 19 financial performance disclosure prevents validation of franchisee earnings claims
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail61 matters · Item 3
Litigation cases
The franchisor
Pending (5)
Francisco J. Marmol v. Bimbo Foods Bakeries Distribution, LLC
pendingThird-party plaintiff · filed 2024-11-07 · Civil Court of the City of New York, County of Bronx · CV-017373-24/BX
“Francisco J. Marmol v. Bimbo Foods Bakeries Distribution, LLC. On November 7, 2024, Plaintiff filed a complaint in the Civil Court of the City of New York, County of Bronx, Case CV-017373- 24/BX. Plaintiff alleges monies due from BFBD for $30,000 with interest for BFBD allegedly failing to comply with a payment arrangement Plaintiff alleges was verbally agreed to.”Page 15 of the 2025 FDD, Item 3
Provencher, McGuire, and Martel vs. Bimbo Bakeries USA, Inc. and Bimbo Foods Bakeries Distribution, LLC
pendingBrought by a franchisee · filed 2022-10-28
“Provencher, McGuire, and Martel vs. Bimbo Bakeries USA, Inc. and Bimbo Foods Bakeries Distribution, LLC. On October 28, 2022, plaintiffs, on behalf of themselves and others similarly situated, filed a class and collective action against BBUSA and BFBD alleging violations of federal and Vermont labor and employment laws.”Page 15 of the 2025 FDD, Item 3
Outcome:“In June 2024, the Court granted BFBD's request for an interlocutory appeal to the Second Circuit Court of Appeals to address the lower Court's ruling that it also held personal jurisdiction over IBPs in NY and CT.”
Walter R. Davis v. Bimbo Foods Bakeries Distribution, LLC
pendingBrought by a franchisee · filed 2022-02-04 · Circuit Court for Montgomery County Maryland · Case #607
“Walter R. Davis v. Bimbo Foods Bakeries Distribution, LLC. On February 4, 2022, Plaintiff Walter Davis filed suit in the Circuit Court for Montgomery County Maryland, Case #607. In his complaint, Plaintiff alleges Breach of Contract and Anticipatory Breach of Contract.”Page 15 of the 2025 FDD, Item 3
Outcome:“A ruling was issued on June 25, 2024 declaring the Kroger to be an outlet under the distribution agreement. However, the court declined to force BFBD to allow Davis to service the outlet and instead awarded Davis damages in the amount of $452,343.41. BFBD is currently appealing the ruling.”
Kharchyna and Ktomaluy, Inc. vs. Kuvshynova, et. al.
pendingBrought by a franchisee · filed 2021-05-13 · Queens County Supreme Court (appeal noticed to the Appellate Division)
“Kharchyna and Ktomaluy, Inc. vs. Kuvshynova, et. al. On May 13, 2021, Taras Kharchyna, President and sole shareholder of former IBP Ktomaluy, Inc., filed suit against several parties, including Bimbo Foods Bakeries Distribution, LLC (“BFBD”) in Queens County Supreme Court.”Page 14 of the 2025 FDD, Item 3
Outcome:“On December 12, 2024, the court granted BFBD’s Motion to Dismiss. On January 9, 2025, Plaintiffs filed a Notice of Appeal with the Appellate Division of the New York Supreme Court.”
SWLLCBreadMe, LLC v. Bimbo Foods Bakeries Distribution, LLC and Joseph Janssen, Inc. v. Bimbo Foods Bakeries Distribution, LLC
pendingBrought by a franchisee · American Arbitration Association (one consolidated hearing, Atlanta, GA) · 01-24-0009-2983 and 01-24-0009-2978
“These two arbitration cases (01-24-0009-2983 and 01-24-0009- 2978) were filed with the American Arbitration Association and consolidated to the same Arbitrator for one hearing in Atlanta, GA. Plaintiffs in both cases allege that Defendant improperly calculated the fair market value of their distribution rights when Defendant was purchasing same.”Page 15 of the 2025 FDD, Item 3
Concluded (6)
San Rojas, Inc. and Rogelio Lupercio vs. Bimbo Foods Bakeries Distribution, LLC
settledBrought by a franchisee · filed 2025-01-08 · 3rd Judicial Circuit, Wayne County, Michigan
“San Rojas, Inc. and Rogelio Lupercio vs. Bimbo Foods Bakeries Distribution, LLC. On January 8, 2025, San Rojas, Inc. and Rogelio Lupercio, president and sole shareholder of San Rojas, Inc., filed suit against Bimbo Foods Bakeries Distribution, LLC (“BFBD”) in the 3rd Judicial Circuit, Wayne County, Michigan.”Page 29 of the 2025 FDD, Item 3
Outcome:“On March 4, 2025, the parties agreed to a settlement, resulting in BFBD purchasing Plaintiff’s distributorship for $260,000.”
Turmel vs. Bimbo Foods Bakeries Distribution, LLC
settledBrought by a franchisee · filed 2022-08-04 · Saratoga County, NY
“Turmel vs. Bimbo Foods Bakeries Distribution, LLC. On August 4, 2022, former IBP David Turmel filed suit against BFBD in Saratoga County, NY. Mr. Turmel has asserted claims for Breach of Contract, Breach of the Covenant of Good Faith and Fair Dealing, and also for Conversion”Page 28 of the 2025 FDD, Item 3
Outcome:“In May 2023, the parties reached a settlement whereby defendants, without admitting liability, agreed to pay Plaintiff and Plaintiff’s attorney a total of $75,000”
Charles Sims v. Bimbo Foods Bakeries Distribution, LLC
settledBrought by a franchisee · filed 2021 · Allegheny County Court of Common Pleas, Pennsylvania · GD-21-1730
“Charles Sims v. Bimbo Foods Bakeries Distribution, LLC. On or about March 8, 2021, Plaintiff Charles Sims filed suit in Allegheny County Court of Common Pleas, Pennsylvania, Case # GD-21- 1730.”Page 28 of the 2025 FDD, Item 3
Outcome:“In June 2021, Plaintiff and Defendants reach a settlement whereby BFBD, without admitting liability, agreed to pay Plaintiff a total of $375,000”
Cox v. Bimbo Bakeries USA, Inc. and Bimbo Foods Bakeries Distribution, LLC
settledThird-party plaintiff · filed 2019-04-15 · U.S. District Court for the Southern District of Alabama · 5:19-cv-00577-HNJ
“Cox v. Bimbo Bakeries USA, Inc. and Bimbo Foods Bakeries Distribution, LLC, U.S. District Court for the Southern District of Alabama, Case No. 5:19-cv-00577-HNJ. On April 15, 2019, Kenneth Cox filed an action against Bimbo Bakeries USA, Inc. and Bimbo Foods Bakeries Distribution, LLC on behalf of himself and others similarly situated nationwide”Page 27 of the 2025 FDD, Item 3
Outcome:“On May 5, 2020, the parties reached an agreement to settle the case for a total payment of $703,000 payable to the five named Plaintiffs and 82 opt-ins.”
David Camp and Keith Hadmack v. Bimbo Bakeries USA, Inc. and Bimbo Foods Bakeries Distribution, LLC
settledBrought by a franchisee · filed 2018-05-08 · U.S. District Court for the District of New Hampshire
“David Camp and Keith Hadmack v. Bimbo Bakeries USA, Inc. and Bimbo Foods Bakeries Distribution, LLC. On May 8, 2018, David Camp and Keith Hadmack (“Plaintiffs”), independent operators, filed a purported class and collective action Complaint”Page 26 of the 2025 FDD, Item 3
Outcome:“By a Global Settlement Agreement dated November 13, 2020, the parties agreed to settle all claims in this action, while simultaneously settling the claims, in both Burke actions, one in the Southern District of New York, one in the Northern District of New York, aa well dozens of individual arbitrations for the individuals listed below.”
In the Matter of BFBD
concludedGovernment or regulatory action · filed 2014 · Securities Division of the Office of the Attorney General of Maryland / Maryland Securities Commissioner · Case No. 2014-0348
“In the Matter of BFBD (Case No. 2014-0348) – The Securities Division of the Office of the Attorney General of Maryland (the “Securities Division”) initiated an inquiry on September 8, 2014 regarding BFBD’s franchise-related activities in Maryland.”Page 15 of the 2025 FDD, Item 3
Outcome:“to pay the Office of the Attorney General a civil monetary penalty of $50,000. The inquiry was settled pursuant to the Consent Order, and concluded as of November 4, 2015.” (page 16)
Parent, affiliates and predecessor
Pending (1)
Tlaloc Munoz, Miguel Ruiz, and Edgar Corona v. Earthgrains Distribution, LLC and Bimbo Bakeries Inc.
pendingThird-party plaintiff · Earthgrains Distribution, LLC and Bimbo Bakeries Inc. ('Earthgrains'; the filing also refers to BBUSA) · filed 2022 · California Labor and Workforce Development Agency (PAGA notice); Superior Court of California, County of San Diego; removed to the United States District Court for the Southern District of California; 9th Circuit appeal
“Tlaloc Munoz, Miguel Ruiz, and Edgar Corona v. Earthgrains Distribution, LLC and Bimbo Bakeries Inc., California Labor and Workforce Development Agency. On May 23, 2022, Earthgrains Distribution, LLC and Bimbo Bakeries Inc. (“Earthgrains”) were served notice that the above captioned individuals would be seeking PAGA penalties related to alleged violations of California Labor Code Section 2699.3.”Page 14 of the 2025 FDD, Item 3
Outcome:“As a result, the case will be scheduled for trial in federal court.”
Concluded (3)
Gonzalez vs. Bimbo Bakeries USA, Inc., et. al.
settledThird-party plaintiff · Bimbo Bakeries USA, Inc., et al. · filed 2023-02-24 · Superior Court of California, County of Riverside; removed to the United States District Court for the Southern District of California
“Gonzalez vs. Bimbo Bakeries USA, Inc., et. al. On February 24, 2023, plaintiff, , on behalf of himself and others similarly situated, in the Superior Court of California, County of Riverside. The case was later removed to the United States District Court for the Southern District of California. Plaintiff is seeking PAGA penalties related to alleged violations of California Labor Code.”Page 29 of the 2025 FDD, Item 3
Outcome:“On April 3, 2024, the parties settled this action for a total of $47,750 and the action was dismissed.”
Reid vs. Bimbo Bakeries USA, Inc., et. al.
settledThird-party plaintiff · Bimbo Bakeries USA, Inc., et al. · filed 2023-02-09 · Superior Court of New Jersey, Burlington County
“Reid vs. Bimbo Bakeries USA, Inc., et. al. On February 9, 2023, plaintiff, on behalf of himself and others similarly situated, filed a complaint in the Superior Court of New Jersey, Burlington County. The complaint alleges violations of the New Jersey Wage and Payment Law under N.J.S.A. 34:11-4.2, 34:11-4.4, and 34:11-56a(4).”Page 28 of the 2025 FDD, Item 3
Outcome:“In September 2023, the parties reached a settlement whereby defendants, without admitting liability, agreed to pay Plaintiff and Plaintiff’s attorney a total of $115,000”
Phairoj Kaewsawang, et al. v. Sara Lee Fresh, Inc., Sara Lee Corporation, et. al.
settledBrought by a franchisee · Sara Lee Fresh, Inc., Sara Lee Corporation, et al. (later added: Earthgrains Distribution LLC, Grupo Bimbo S.A.B. de C.V., Bimbo Bakeries USA, Inc.) · filed 2006-10-23 · Los Angeles County, Superior Court of the State of California · BC 360-109
“Phairoj Kaewsawang, et al. v. Sara Lee Fresh, Inc., Sara Lee Corporation, et. al., Los Angeles County, Superior Court of the State of California, Case No. BC 360-109, filed October 23, 2006. A former Sara Lee independent distributor, Phairoj Kaewsawang, filed a class action lawsuit and claimed to represent all others similarly situated.”Page 22 of the 2025 FDD, Item 3
Outcome:“Per the settlement agreement, the Defendants collectively agreed to make a maximum payment of $14,500,000,”
This list shows 15 of the 61 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
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 territory |
| 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 | 61 |
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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Bimbo Foods Bakeries Distribution?
Bimbo Foods Bakeries Distribution is franchised by Bimbo Foods Bakeries Distribution, LLC. Its parent company is Bimbo Bakeries USA, Inc.. The ultimate parent named in the FDD is Grupo Bimbo S.A.B. de C.V.. Source: FDD Item 1, 2025 filing.
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 B-grade franchise with a verdict score of 69 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
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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.