Panera Bread Franchise Cost, Revenue & Review 2026
- Investment
- $1.4M – $4.7M
- Disclosed sales
- $2.6M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Panera Bread is a fast-casual bakery-cafe franchise serving made-to-order sandwiches, salads, soups, and fresh-baked goods. Franchisees run cafes managing kitchen production, service, and Panera's digital-ordering and loyalty systems.
FranchiseVerdict summary · 2026
A Panera Bread franchise requires a total initial investment of $1.4M – $4.7M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.6M[2]. FranchiseVerdict grade: A (Strongest tier), 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 scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $1.4M – $4.7M
- 96th pct Service Resta…
- Avg gross sales
- $2.6M
- Net sales35th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 2,206
- 94th 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 $1.4M – $4.7M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.6M/year, with an estimated 13% cash-on-cash return.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHNegative: net -8 franchised outlets in the latest year (24 opened, 32 closed) (Item 20).
- SCALEEstablished system with 2,206 units across 33 years of franchising. Strong brand recognition and operational playbook.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Panera, LLC
- Parent company
- Panera Brands, Inc.
- FDD Item 1, page 6 of the 2025 FDD
- Ultimate parent
- JAB Holding Company S.à.r.l.
- FDD Item 1, page 6 of the 2025 FDD
- Predecessor
- Saint Louis Bread Company, Inc. / Au Bon Pain Co., Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Chief Financial Officer
- Paul Carbone
- Incorporated in
- DE
- HQ
- 1400 South Highway Drive, Suite 100, Fenton, Missouri 63026
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $3.6B
- vs $4.7B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- of Panera with a pr
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Paul Carbone
- Headquarters
- MO
- Founded
- 1993
- FDD year
- 2025
- States available
- 44
Can you afford it, and what does the money buy?
Entry cost runs 527% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $35K | $35K | |
| Real Property | — | — | |
| Leasehold Improvements | $643K | $2.9M | |
| Equipment | $375K | $507K | |
| Optional Technology Systems | $100K | $132K | |
| Fixtures | $72K | $124K | |
| Furniture | $26K | $95K | |
| Consultant fees | $47K | $328K | |
| Supplies & Inventory | $22K | $30K | |
| Smallwares | $10K | $48K | |
| Signage | $19K | $102K | |
| Additional Funds (3 months) | $86K | $352K | |
| Total initial investment | $1.4M | $4.7M |
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
- $1.4M – $4.7M
- Bottom third — review vs category
- Liquid capital req'd
- $86K – $352K
- Bottom third — review vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
- Payback period
- 8.0 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of net sales |
| Marketing / ad fund | 3.5% of net sales |
| Transfer fee | $8K |
| Renewal fee | $50 |
| Inventory (initial) | $22K – $30K |
| Total fee load | 8.5% of rev |
What do units actually make?
Average unit sales run 166% above the quick-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Panera Bread until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$3.3M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $382K as Net Profit. This is a disclosed figure, not our estimate — we publish no modelled profit for Panera Bread.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Panera Bread 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Reported as net sales, not gross sales
- Avg gross sales
- $2.6M
- Per unit, per year
- Avg net profit
- $382K
- Reported as Net Profit in FDD Item 19
- Cash-on-cash
- 12.5%
- Based on Net Profit / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- avg net sales and profit
- Sample size
- 1,084 outlets
- vs category median 19 · large
- Range (low → high)
- $436K→$6.1MCited, not corroborated — printed on page 60 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 8 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.6M/year in gross sales. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 8.5% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+1.5% 3-year CAGR) with 2,206 units.
Multi-unit rate
Only 5% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Panera Bread 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
- 2,206
- Opened
- 24
- Last reporting year
- Closed
- 32
- Terminated
- 18
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 1.5%
- Company-owned
- 1,101
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
- Multi-unit owners
- 5.0%
- Net growth (3-yr)
- +1.5%
- Net unit change over 3 years
- 3-yr CAGR
- +1.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 18
- Reacquired
- 11
- Franchisor bought back
- Transfer rate
- 0.7%
- Owners selling to other franchisees
- Termination rate
- 0.5%
- Franchisor-initiated terminations
- Ceased ops
- 0.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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
69 current owners across 8 states.
- CA 53
- AZ 7
- FL 3
- MD 2
- CO 1
- MO 1
- NJ 1
- OH 1
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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $3.6M
- Median loan
- $3.6M
- 50th percentile
- Charge-off rate
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
One concluded settlement agreement (March 2019) with 14 states and DC regarding employee non-solicitation provisions in franchise agreements; Panera agreed to discontinue the provisions
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
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 75 / 100 verdict
- 01MEDUnit decline of -0.7% YoY indicates mature/contracting system with 2,206 locations
- 02HIGH2019 non-solicitation litigation settlement suggests franchise agreement enforcement issues and potential franchisor-franchisee relationship tensions
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail1 matters · Item 3
Litigation cases
The franchisor
Concluded (1)
Settlement Agreement re non-solicit provisions
settledGovernment or regulatory action · filed 2019-03-22
“Settlement Agreement re non-solicit provisions. On or about March 22, 2019, we entered into a settlement agreement (“Settlement Agreement”) with the states of Massachusetts, California, Illinois, Iowa, Maryland, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont and the District of Columbia (“Settling States”).”Page 12 of the 2025 FDD, Item 3
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 8.5% 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 | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | St. Louis, Missouri |
| Jury trial waiver | Yes |
| Governing law | MO |
| Litigation count | 1 |
View Item 3 litigation summary
One concluded settlement agreement (March 2019) with 14 states and DC regarding employee non-solicitation provisions in franchise agreements; Panera agreed to discontinue the provisions
Items 10, 11
Training & Operations
- Classroom training
- 2 hrs
- On-the-job training
- 720 hrs
- Training location
- Certified Panera Bread training Bakery-Cafe in franchisee's market
- Ongoing training
- Required
- Field support
- 768 hrs/yr
- On-site visits per year
- Site selection
- franchisor
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
69 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 Panera Bread franchise?
The total investment to open a Panera Bread franchise ranges from $1.4M – $4.7M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Panera Bread franchise owners earn?
According to Item 19 of the Panera Bread FDD, the average gross sales per unit is $2.6M. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Panera Bread?
Panera Bread is franchised by Panera, LLC. Its parent company is Panera Brands, Inc.. The ultimate parent named in the FDD is JAB Holding Company S.à.r.l.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Panera Bread 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 Panera Bread FDD and qualifies whose outlets they describe.
What is Panera Bread's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Panera Bread (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 Panera Bread franchise locations are there?
As of their most recent FDD filing, Panera Bread has 2,206 total units in the United States, including 1,105 franchised units and 1,101 company-owned units. 24 new units were opened in the latest reporting year.
Is Panera Bread a good franchise to buy?
FranchiseVerdict rates Panera Bread as a A-grade franchise with a verdict score of 75 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.
For franchisors
Are you the franchisor?
If you represent Panera Bread, 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.