Schmidt Baking Distribution (dba Schmidt)Franchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Schmidt Baking Distribution (dba Schmidt) franchise requires a total initial investment of $45K – $364K, including a $30K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $45K – $364K
- 1st pct Food Retail
- Avg gross sales
- N/A
- 1st pct Food Retail
- Royalty
- N/A
- Units
- 460
- 4th pct Food Retail
- SBA default
- N/A
Quick verdict · Food Retail · color = vs category peers
Green = >15% above Food Retail 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
Bottom line
- Total investment $45K – $364K including a $30K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 65/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Schmidt Baking Distribution, LLC
- Parent company
- Schmidt Baking Company, Incorporated
- Predecessor
- is Schmidt Baking Company
- Prior franchisor entity
- Incorporated in
- MD
- HQ
- 601 S. Caroline Street, Baltimore, Maryland 21231
- Auditor
- Gross, Mendelsohn & Associates, P.A.
- Audited financials
- Franchisor revenue
- $254.5M
- vs $249.2M prior year
Affiliated brands
- Jonber Associates
- Exeter Financial Services
- Presidential Truck Leasing
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Schmidt Baking franchisees operate as independent distributors of fresh baked goods and related products through a network of 460 units. Day-to-day operations involve wholesale delivery, route management, account servicing, and inventory management across protected territories. Franchisees are currently classified as independent contractors, though this classification is contested in multiple active lawsuits.
- CEO
- Stephen J. Paterakis
- Headquarters
- MD
- Founded
- 2010
- FDD year
- 2025
- States available
- 9
FDD Item 7 · 2025 filing · 10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Purchase Fee | $30K | $210K | |
| Computer Use and Suppliesnot refundable | $553 | $553 | |
| Vehicle | $7K | $101K | |
| Loan Fees to Exeter | $430 | $2K | |
| Down Payment Loan Origination Fee to DSA | $400 | $400 | |
| Products for 1 Week (Inventory) | $3K | $40K | |
| Vehicle Maintenance | $460 | $3K | |
| Initial Insurance Coveragenot refundable | $600 | $2K | |
| Incorporation Expenses | $300 | $800 | |
| Additional Funds (3 months) | $2K | $6K | |
| Total initial investment | $45K | $364K |
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
- $45K – $364K
- Better than avg vs category
- Liquid capital req'd
- $2K – $6K
- Better than avg vs category
- Franchise fee
- $30K – $210K
- Better than avg vs category
- Royalty
- -n/d
- Ad fund
- -n/d
- Total fee load
- 42.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $42 |
| Transfer fee | $2 |
| Total fee load | 42.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Food Retail averages
How Schmidt Baking Distribution (dba Schmidt) Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 460
- Opened
- 45
- Last reporting year
- Closed
- 1
- Turnover rate
- 0.2%
- Company-owned
- 24
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- -0.5%
- Net unit change last year
- 3-yr CAGR
- +4.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 64
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Schmidt Baking presents HIGH RISK due to system contraction, pervasive wage/employment litigation, regulatory violations, and opaque financial disclosures that prevent due diligence.
Litigation (Item 3)
9 case reference(s): 5 pending, 0 settled.
Largest disclosed settlement: $15,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Gross, Mendelsohn & Associates, P.A.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 65 / 100 rating
- 01MINORDeclining unit count (-0.5% YoY) suggests system contraction and potential saturation or performance issues
- 02MINORMultiple active wage/overtime misclassification lawsuits create ongoing legal and financial exposure for franchisees
- 03MED2019 Maryland Securities Commissioner consent order indicates prior regulatory violations and disclosure failures
- 04MEDNo Item 19 financial performance disclosures (Avg Revenue and Net Income not disclosed) prevents informed ROI analysis
- 05MINORWide investment range ($44K-$364K) with unknown royalty structure creates unpredictable cost burden
- 06MINORUnknown franchise term length limits ability to assess investment recovery timeline
- 07MINORIndependent contractor classification disputes suggest potential reclassification liability and wage law compliance risks
- 08MEDRoyalty structure undisclosed creates uncertainty about actual unit economics and profitability threshold
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Territory type | Geographic |
|---|---|
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 3 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 8 |
View Item 3 litigation summary
9 case reference(s): 5 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- hand-held computer system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: hand-held computer system
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Schmidt Baking Distribution (dba Schmidt) · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Schmidt Baking Distribution (dba Schmidt) franchise?
The total investment to open a Schmidt Baking Distribution (dba Schmidt) franchise ranges from $45K – $364K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Schmidt Baking Distribution (dba Schmidt) franchise owners earn?
Schmidt Baking Distribution (dba Schmidt) 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 Schmidt Baking Distribution (dba Schmidt)'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Schmidt Baking Distribution (dba Schmidt) (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 Schmidt Baking Distribution (dba Schmidt) franchise locations are there?
As of their most recent FDD filing, Schmidt Baking Distribution (dba Schmidt) has 460 total units in the United States, including 418 franchised units and 24 company-owned units. 45 new units were opened in the latest reporting year.
Is Schmidt Baking Distribution (dba Schmidt) a good franchise to buy?
FranchiseVerdict rates Schmidt Baking Distribution (dba Schmidt) as a C-grade franchise with a risk score of 65 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.
For franchisors
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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.