Schmidt Baking Distribution (dba Schmidt) Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Schmidt Baking Distribution is a direct-store-delivery franchise distributing fresh Schmidt-brand breads and baked goods to retailers. Franchisees own protected delivery routes, restocking store shelves and managing inventory and accounts rather than a storefront.
FranchiseVerdict summary · 2026
A Schmidt Baking Distribution (dba Schmidt) franchise requires a total initial investment of $45K – $364K, including a $30K – $210K franchise fee. 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
- $45K – $364K
- 2nd pct Food Retail
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 460
- 11th pct Food Retail
- SBA charge-off
- N/A
Quick verdict · Food Retail · color = vs category peers
Green = favorable by >10% vs Food Retail 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 $45K – $364K including a $30K franchise fee.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Schmidt Baking Distribution, LLC
- Parent company
- Schmidt Baking Company, Incorporated
- Predecessor
- Schmidt Baking Company, Incorporated
- Prior franchisor entity
- CEO title
- President
- Stephen J. Paterakis
- Incorporated in
- Maryland
- 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
- CEO
- Stephen J. Paterakis
- Headquarters
- MD
- Founded
- 2010
- FDD year
- 2025
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 76% below the typical food retail franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown10 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
- Top 40% of category vs category
- Liquid capital req'd
- $2K – $6K
- Top 40% of category vs category
- Franchise fee
- $30K – $210K
- Top 40% of category 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Schmidt Baking Distribution (dba Schmidt) 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 Schmidt Baking Distribution (dba Schmidt) unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
22%
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
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 42.5% — above the Food Retail average of 9.2%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Food Retail averages
How Schmidt Baking Distribution (dba Schmidt) Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 460
- Opened
- 45
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.9%
- Company-owned
- 24
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 38
- Closed (3yr)
- 4
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 62
- Reacquired (3yr)
- 58
- Franchisor bought back
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 7 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.
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
460-unit distribution franchisor with a net loss of -$1,918,274 and financial distress flagged, though net worth is a solid $10.3M on $249M revenue. Two pending federal class/collective misclassification actions (Silva, Franzone) plus a $300,000 settled case (Adragna), which are material for an IC-distributor model. No Item 19 disclosure. Multiple concerns stacked: losses, active class litigation, and no earnings claim.
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 50 / 100 verdict
- 01MINORNet loss -$1,918,274; financial distress flagged
- 02MINORTwo pending federal misclassification class/collective actions plus $300K settlement
- 03MINORNo Item 19 disclosure
- 04MINORPositive net worth $10.3M mitigates severity
Severity inferred from the FDD text · not a regulatory classification
FDD Items 12, 15, 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
95 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 Item 19 in the Schmidt Baking Distribution (dba Schmidt) 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 Schmidt Baking Distribution (dba Schmidt) FDD and qualifies whose outlets they describe.
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 436 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 B-grade franchise with a verdict score of 50 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?
If you represent Schmidt Baking Distribution (dba Schmidt), 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.