Bottom line
- Total investment $727K – $1.8M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.9M/year (median $2.7M).
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 213 loans (below the industry average).
- System growing at 89.8% CAGR over 3 years with 197 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Paris Baguette unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Paris Baguette units return on equity?
Equity IRR · 5-yr
42.5%
5.87× MOIC
Year-1 DSCR
2.04×
EBITDA ÷ debt service
Equity required
$3.0M
on $11.4M purchase
Total debt
$8.4M
SBA $5.0M + senior + seller note
Overview
About
Paris Baguette franchisees operate upscale bakery-cafés selling French-style baked goods, pastries, and coffee beverages. Day-to-day operations include managing in-store baking/preparation, staffing, inventory control, and customer service in high-rent locations (typically 1,500-2,500 sq ft), with support from the parent company's supply chain and brand standards.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Paris Baguette presents moderate-to-cautious risk: strong revenue metrics and growth offset by undisclosed profitability data, recent labor law violations, and high capital requirements without transparent franchisee earnings disclosure.
Score breakdown · what drove the 42 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $2.86M average revenue claim — inability to verify actual franchisee profitability
- 02MINORRecent labor violation charges against Chairman (April 2024) suggest potential systemic HR/compliance issues that could affect franchise operations
- 03MINORAggressive unit growth (35.8% YoY) with 197 units may indicate over-saturation risk or quality control concerns in rapid expansion
- 04MEDHigh initial investment range ($727K-$1.83M) combined with 5% royalty creates significant break-even pressure without disclosed net income
- 05HIGHGoing Concern flag is FALSE but litigation history (FTC order 2020, labor charges 2024) indicates governance/compliance weaknesses despite Supreme Court reversal
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Paris Baguette · FDD (2025) PDF