Paris BaguetteFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Paris Baguette franchise requires a total initial investment of $727K – $1.8M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.9M[2]. SBA 7(a) loans show a 5.6% charge-off rate across 116 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $727K – $1.8M
- 92nd pct Service Resta…
- Avg gross sales
- $2.9M
- 57th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 197
- 81st pct Service Resta…
- SBA default
- 5.6%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 186 to 20 over 3 years. Investigate why operators are leaving.
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).
- Verdict A (Top Quintile) with a risk score of 34/100. SBA loan charge-off rate of 5.6% across 116 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- Paris Baguette Family Inc.
- Parent company
- Paris Croissant Co., Ltd.
- CEO title
- Chief Executive Officer
- Darren Tipton
- Incorporated in
- DE
- HQ
- 137 West Commercial Avenue, Moonachie, New Jersey 07074
- Auditor
- KLICHS
- Audited financials
- Franchisor revenue
- $66.9M
- vs $96.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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.
- CEO
- Darren Tipton
- Headquarters
- NJ
- Founded
- 2014
- FDD year
- 2025
- States available
- 25
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Real Estate or Advance Rent and Security Deposit and other Prepaid Expenses and Costs | $10K | $90K | |
| Building Costs/Leasehold Improvements | $325K | $1.0M | |
| Equipment and Fixtures | $168K | $315K | |
| Signs | $8K | $25K | |
| Smallwares | $25K | $30K | |
| Point of Sale System, Hardware, Software and Surveillance Equipment | $8K | $15K | |
| Opening Inventory | $40K | $60K | |
| Grand Opening Promotion | $13K | $13K | |
| Licenses, Permits, Fees and Deposits | $5K | $19K | |
| Miscellaneous Expenses | $11K | $16K | |
| Insurance | $3K | $5K | |
| Attorneys' Fees and Business Consultants | $7K | $13K | |
| Travel and Living Expenses While Training | $20K | $65K | |
| Cost of Goods During Training | $4K | $4K | |
| Test Fit Drawings and Survey | $2K | $7K | |
| Additional Funds for First 3 Months of Operation | $30K | $100K | |
| Total initial investment | $727K | $1.8M |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$429K
15.0% margin
Unlevered ROIC
32%
EBITDA / total invested capital
Payback
3.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $727K – $1.8M
- Below avg, review vs category
- Liquid capital req'd
- $30K – $100K
- Below avg, review vs category
- Franchise fee
- $40K – $50K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $40K |
| Renewal fee | $50 |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $2.9M
- Per unit, per year
- Median gross sales
- $2.7M
- Item 19 type
- Average Sales
- Sample size
- 130 units
- vs category median 28 · large
- Range (low → high)
- $1.4M→$7.2M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Paris Baguette Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 197
- Opened
- 51
- Last reporting year
- Closed
- 2
- Turnover rate
- 1.0%
- Company-owned
- 11
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- +35.8%
- Net unit change last year
- 3-yr CAGR
- +89.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 10
- Transfer rate
- 5.1%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
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 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 116
- Loan volume
- $128.5M
- Median loan
- $1.0M
- 50th percentile
- Charge-off rate
- 5.6%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 94.4%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 46
- Defaults
- 1
Vintage analysis
Paris Baguette charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Paris Baguette's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 12-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
1) Korea Fair Trade Commission Order 2020-290 (October 2020): KFTC issued administrative surcharge of 64.7 billion won against SPC Affiliates for alleged unfair assisting under MRFTA Article 23(1)(vii)(b). SPC Affiliates appealed. Seoul High Court nullified remedial orders and surcharges on January 31, 2024. Both parties appealed to Supreme Court. Supreme Court affirmed Seoul High Court decision in June 2024, upholding only one remedial order regarding flour procurement and nullifying all administrative surcharges. Entire 64.7 billion won surcharge refunded. Review pending on whether administrative surcharge will be assessed for upheld remedial order. 2) Pending labor/criminal action: On April 21, 2024, Chairman Young-in Hur charged by Seoul Central District Prosecutors' Office with violating Trade Union and Labor Relations Adjustment Act for allegedly forcing bakers at Paris Baguette locations to withdraw from Korean Confederation of Trade Unions (2019-2022) and join Federation of Korean Trade Unions. Mr. Hur denies all charges. Matter presently being tried in Seoul Central District Court.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KLICHS
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 34 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Geographic |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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 | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | New York, New York |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 2 |
View Item 3 litigation summary
1) Korea Fair Trade Commission Order 2020-290 (October 2020): KFTC issued administrative surcharge of 64.7 billion won against SPC Affiliates for alleged unfair assisting under MRFTA Article 23(1)(vii)(b). SPC Affiliates appealed. Seoul High Court nullified remedial orders and surcharges on January 31, 2024. Both parties appealed to Supreme Court. Supreme Court affirmed Seoul High Court decision in June 2024, upholding only one remedial order regarding flour procurement and nullifying all administrative surcharges. Entire 64.7 billion won surcharge refunded. Review pending on whether administrative surcharge will be assessed for upheld remedial order. 2) Pending labor/criminal action: On April 21, 2024, Chairman Young-in Hur charged by Seoul Central District Prosecutors' Office with violating Trade Union and Labor Relations Adjustment Act for allegedly forcing bakers at Paris Baguette locations to withdraw from Korean Confederation of Trade Unions (2019-2022) and join Federation of Korean Trade Unions. Mr. Hur denies all charges. Matter presently being tried in Seoul Central District Court.
Items 10, 11
Training & Operations
- Classroom training
- 160 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
29 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Paris Baguette · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Paris Baguette franchise?
The total investment to open a Paris Baguette franchise ranges from $727K – $1.8M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Paris Baguette franchise owners earn?
According to Item 19 of the Paris Baguette FDD, the average gross sales per unit is $2.9M. The median is $2.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Paris Baguette's franchise failure rate?
Based on SBA 7(a) loan data, Paris Baguette has a charge-off rate of 5.6% across 116 loans, meaning 5.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Paris Baguette franchise locations are there?
As of their most recent FDD filing, Paris Baguette has 197 total units in the United States, including 186 franchised units and 11 company-owned units. 51 new units were opened in the latest reporting year.
Is Paris Baguette a good franchise to buy?
FranchiseVerdict rates Paris Baguette as a A-grade franchise with a risk score of 34 out of 100, 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.
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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.