Schmidt Baking Distribution (dba Schmidt) Franchise Cost, Revenue & Review 2026
- Investment
- $45K – $364K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
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. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
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 scored2 of 3 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $45K – $364K
- 2nd pct Food Retail
- Avg gross sales
- N/A
- Royalty
- Not extracted
- 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 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 $45K – $364K including a $30K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 49/100 (higher is better).
- GROWTHNegative: net -2 franchised outlets in the latest year (45 opened, 47 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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
- FDD Item 1, page 7 of the 2025 FDD
- 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
- $249.2M
- vs $254.5M 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 30% 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
- No royalty is charged. Franchisor derives revenue from wh…
- Ad fund
- No mandatory advertising fund; franchisor does not conduc…
- Total fee load
- 42.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $42 |
| Transfer fee | $2 |
| Inventory (initial) | $3K – $40K |
| Total fee load | 42.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Schmidt Baking Distribution (dba Schmidt) makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Schmidt Baking Distribution (dba Schmidt) 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 annual revenue, royalty rate, ad fund rate, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median of 7.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Schmidt Baking Distribution (dba Schmidt) Compares
Category median of published Food Retail 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
- 460
- Opened
- 45
- Last reporting year
- Closed
- 47
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.2%
- Company-owned
- 24
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 64
- Reacquired
- 46
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 23
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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.
Where the owners are · Item 20 owner list
93 current owners across 7 states.
- MD 66
- CT 10
- DE 9
- DC 3
- NY 2
- OR 2
- PA 1
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. 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 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)
Subject: the franchisor is a named party (defendant).
Two pending federal class/collective actions (Silva v. Schmidt in D. Conn.; Franzone v. Schmidt in E.D. Pa.) alleging misclassification of Distributors as independent contractors rather than employees; one concluded case (Adragna et al. v. Schmidt, M.D. Pa.) settled for $300,000 in Dec 2024; one concluded case (Gray/Jackson v. Schmidt, D. Md.) settled via arbitration for $72,500 and $110,000 respectively; franchisor also filed 3 arbitration demands against franchisees in the last fiscal year; a 2019 Maryland Securities Division consent order for selling unregistered franchises, with a $32,500 penalty and rescission offers.
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
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 49 / 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
What are you signing up for?
Ongoing fees run about 42.5% 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
| Territory type | Exclusive territory |
|---|---|
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory sizeℹ | Geographic |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 3 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Baltimore, Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 8 |
View Item 3 litigation summary
Two pending federal class/collective actions (Silva v. Schmidt in D. Conn.; Franzone v. Schmidt in E.D. Pa.) alleging misclassification of Distributors as independent contractors rather than employees; one concluded case (Adragna et al. v. Schmidt, M.D. Pa.) settled for $300,000 in Dec 2024; one concluded case (Gray/Jackson v. Schmidt, D. Md.) settled via arbitration for $72,500 and $110,000 respectively; franchisor also filed 3 arbitration demands against franchisees in the last fiscal year; a 2019 Maryland Securities Division consent order for selling unregistered franchises, with a $32,500 penalty and rescission offers.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Optional
- Site selection
- Franchisor designates Sales Area; no site selection required (no fixed office/business location required)
- 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
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) makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Schmidt Baking Distribution (dba Schmidt)?
Schmidt Baking Distribution (dba Schmidt) is franchised by Schmidt Baking Distribution, LLC. Its parent company is Schmidt Baking Company, Incorporated. Source: FDD Item 1, 2025 filing.
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 49 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
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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.