la Madeleine Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
la Madeleine is a French bakery-cafe franchise serving pastries, quiche, soups, salads, and sandwiches in a country-French setting. Franchisees run cafes managing baking, counter and cafe service, and staffing.
FranchiseVerdict summary · 2026
A la Madeleine franchise requires a total initial investment of $1.2M – $2.3M, including a $40K franchise fee and an ongoing 5.0% royalty[2]. 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
- $1.2M – $2.3M
- 96th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 91
- 76th 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 $1.2M – $2.3M including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAudited financial statements are the consolidated statements of Le Duff America, Inc. and Subsidiaries (the franchisor's affiliate), not of the franchisor La Madeleine Franchising Company, Inc. itself. FY2024 ended Dec 31, 2024; FY2023 ended Dec 26, 2023. other_revenue shown is the Royalties and other fees line ($10,976,704); manufacturing sales were $7,909,562 and store sales $60,621,279.
- RISKVerdict A (Strongest tier), verdict score 74/100 (higher is better).
- DATAItem 19 reports Gross Sales + EBITDA (company-owned); Gross Sales only (franchised) rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- La Madeleine Franchising Company, Inc.
- Parent company
- La Madeleine, Inc.
- Ultimate parent
- Le Duff, Restauration
- Predecessor
- for purposes of this disclosure document is our direct parent company
- Prior franchisor entity
- CEO title
- CEO
- Lionel Ladouceur
- Incorporated in
- DE
- HQ
- 12201 Merit Drive, Suite 900, Dallas, TX 75251
- Auditor
- Grant Thornton
- Audited financials
- Franchisor revenue
- $79.5M
- vs $79.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- LDA Management Company
- Gourmet Cuisine
- Bridor
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Lionel Ladouceur
- Headquarters
- TX
- Founded
- 2011
- FDD year
- 2025
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 165% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Real Property | — | — | |
| Design, Permitting Fees & Liquor License | $56K | $75K | |
| Building and Leasehold Improvements | $704K | $873K | |
| Security Camera System | $0 | $10K | |
| Signage and Awnings | $22K | $43K | |
| Furniture, Fixtures & Equipment | $271K | $407K | |
| Technology Suite | $44K | $108K | |
| Initial Technology Administrative Fee | $3K | $3K | |
| Site Work | $0 | $300K | |
| Start-up Inventory & Supplies | $32K | $52K | |
| Grand Opening Advertising | $10K | $30K | |
| Insurance | $7K | $25K | |
| Training & Managers' Salary | $19K | $54K | |
| Utility Deposits / Licenses | $3K | $5K | |
| Legal and Accounting | $5K | $30K | |
| Additional Funds - 3 months | $15K | $200K | |
| Total initial investment | $1.2M | $2.3M |
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
- $1.2M – $2.3M
- Bottom third — review vs category
- Liquid capital req'd
- $15K – $200K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $3K |
| Training fee | $4K |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Inventory (initial) | $32K – $52K |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
la Madeleine 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 la Madeleine unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below 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
Audited financial statements are the consolidated statements of Le Duff America, Inc. and Subsidiaries (the franchisor's affiliate), not of the franchisor La Madeleine Franchising Company, Inc. itself. FY2024 ended Dec 31, 2024; FY2023 ended Dec 26, 2023. other_revenue shown is the Royalties and other fees line ($10,976,704); manufacturing sales were $7,909,562 and store sales $60,621,279.
- Item 19 type
- Gross Sales + EBITDA (company-owned); Gross Sales only (franchised)
- Sample size
- 81
- vs category median 20 · large
- Range (low → high)
- $1.2M→$5.2M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
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 9.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports Gross Sales + EBITDA (company-owned); Gross Sales only (franchised) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (+3.3% 3-year CAGR) with 91 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 la Madeleine Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 91
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.6%
- Company-owned
- 29
- Corporate units in the system
- % franchised
- 68%
- vs corporate-owned
- Net growth (3-yr)
- +3.3%
- Net unit change over 3 years
- 3-yr CAGR
- +3.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 3
- Franchisor bought back
- Projected new
- 6
- Franchisor's next-year forecast
- Termination rate
- 1.1%
- Franchisor-initiated terminations
- Ceased ops
- 1.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
La Madeleine presents moderate-to-high risk due to declining unit count, lack of financial performance transparency, thin margins in a contracting footprint, and high capital requirements in a challenging casual dining market.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Largest disclosed settlement: $40,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton
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: Yes
- 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
- 01MINORUnit count declining 3.1% YoY (91 units) suggests system contraction and potential market saturation or operational challenges
- 02MINOR11.5% net margin (251K / 2.19M) is thin for food service; 5% royalty on top of COGS (typically 28-32%), labor (28-30%), rent (8-10%) leaves minimal cushion
- 03MINORMature brand in competitive QSR/casual dining segment facing structural headwinds (rising labor, inflation, changing consumer behavior)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% 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 |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 12 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Texas |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 252 hrs
- Training location
- Certified Training Café in Dallas/Fort Worth Metroplex (DFW)
- Ongoing training
- Required
- Time to open
- 16 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- NCR Aloha Point of Sale and Kitchen Display System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR Aloha Point of Sale and Kitchen Display System
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
la Madeleine · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a la Madeleine franchise?
The total investment to open a la Madeleine franchise ranges from $1.2M – $2.3M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do la Madeleine franchise owners earn?
la Madeleine 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 la Madeleine 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 la Madeleine FDD and qualifies whose outlets they describe.
What is la Madeleine's franchise failure rate?
SBA 7(a) loan charge-off data is not available for la Madeleine (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 la Madeleine franchise locations are there?
As of their most recent FDD filing, la Madeleine has 91 total units in the United States, including 62 franchised units and 29 company-owned units. 2 new units were opened in the latest reporting year.
Is la Madeleine a good franchise to buy?
FranchiseVerdict rates la Madeleine 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
Are you the franchisor?
If you represent la Madeleine, you can request corrections or provide updated information.
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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.