Magnolia Bakery Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Magnolia Bakery is a bakery franchise famous for its banana pudding, cupcakes, and classic American baked goods. Franchisees run the bakeries, managing baking, retail sales, and customer service.
FranchiseVerdict summary · 2026
A Magnolia Bakery franchise requires a total initial investment of $594K – $1.2M, including a $49K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $594K – $1.2M
- 83rd pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 11
- 39th 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 $594K – $1.2M including a $49K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 covers ten AFFILIATE-owned bakeries (printed p.41) — eight Flagship and two No-Bake. Note 3 expressly excludes the system's one franchised location, so no franchised-outlet performance is disclosed.
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- DATAItem 19 reports gross revenues and ebitda 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
- Magnolia Bakery International, LLC
- Parent company
- Magnolia Group Holdings, Inc.
- CEO title
- Chief Executive Officer and Chief Baking Officer
- Barbara Petracca
- Incorporated in
- DE
- HQ
- 244 West 54th Street, Suite 501, New York, NY 10019
- Auditor
- CohnReznick LLP
- Audited financials
- Franchisor revenue
- $1.8M
- vs $1.5M prior year
Overview
About
- CEO
- Barbara Petracca
- Headquarters
- NY
- Founded
- 2011
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 35% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $53K | $123K |
| Equipment, build-out, other | $493K | $1.0M |
| Total initial investment | $594K | $1.2M |
Source: Magnolia Bakery 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $594K – $1.2M
- Bottom third — review vs category
- Liquid capital req'd
- $53K – $123K
- Bottom third — review vs category
- Franchise fee
- $49K – $49K
- Bottom third — review vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $99 |
| Transfer fee | $25K |
| Renewal fee | $50 |
| Inventory (initial) | $12K – $16K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Magnolia Bakery 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 Magnolia Bakery unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
11%
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
Item 19 covers ten AFFILIATE-owned bakeries (printed p.41) — eight Flagship and two No-Bake. Note 3 expressly excludes the system's one franchised location, so no franchised-outlet performance is disclosed.
Company-owned outlets only - not franchisee performance
- Item 19 type
- gross revenues and ebitda
- Sample size
- 10
- vs category median 20
- Range (low → high)
- $2.0M→$8.0M
- Cohort dispersion (min → max)
- 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 8.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports gross revenues and ebitda rather than annual gross sales, so unit revenue is not directly comparable.
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 Magnolia Bakery Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 9%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
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
Magnolia Bakery presents cautionary risk due to a micro-sized system with no published financials, prior international disputes, and limited growth visibility despite attractive per-unit economics.
Litigation (Item 3)
One concluded matter: Eaternity s.a.l. (Off-Shore) v. Magnolia Bakery International LLC (ICC arbitration, filed January 2017). Area representative sued for breach of area representative agreement following termination notice. Settled December 2017 for $349,000 aggregate payable over 48 months.
Largest disclosed settlement: $349,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CohnReznick LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 55 / 100 verdict
- 01MINOROnly 11 units system-wide with unknown/stagnant growth trajectory raises scalability and viability concerns
- 02MINOR2017 international arbitration settlement ($349K over 48 months) indicates management/execution challenges and operational disputes
- 03MINORHigh initial investment ($594K-$1.19M) relative to small franchise system size creates heightened franchisee risk
- 04MINOR6% royalty on $4.46M average revenue ($267K annually) is substantial margin erosion with unproven unit economics transparency
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 6 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | NY |
| Litigation count | 1 |
View Item 3 litigation summary
One concluded matter: Eaternity s.a.l. (Off-Shore) v. Magnolia Bakery International LLC (ICC arbitration, filed January 2017). Area representative sued for breach of area representative agreement following termination notice. Settled December 2017 for $349,000 aggregate payable over 48 months.
Items 10, 11
Training & Operations
- Classroom training
- 38 hrs
- On-the-job training
- 288 hrs
- Training location
- New York, NY (Home Office and Training Bakeries)
- Ongoing training
- Required
- Time to open
- 13 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Magnolia Bakery · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Magnolia Bakery franchise?
The total investment to open a Magnolia Bakery franchise ranges from $594K – $1.2M, with an initial franchise fee of $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Magnolia Bakery franchise owners earn?
Magnolia Bakery 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 Magnolia Bakery 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 Magnolia Bakery FDD and qualifies whose outlets they describe.
What is Magnolia Bakery's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Magnolia Bakery (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 Magnolia Bakery franchise locations are there?
As of their most recent FDD filing, Magnolia Bakery has 11 total units in the United States, including 1 franchised units and 10 company-owned units. 1 new units were opened in the latest reporting year.
Is Magnolia Bakery a good franchise to buy?
FranchiseVerdict rates Magnolia Bakery as a B-grade franchise with a verdict score of 55 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?
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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.