The Baked BearFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Baked Bear franchise requires a total initial investment of $280K – $871K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $743K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $280K – $871K
- 54th pct Service Resta…
- Avg gross sales
- $743K
- 22nd pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 34
- 56th pct Service Resta…
- SBA default
- 0.0%
- 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 33 to 23 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $280K – $871K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $743K/year.
- Verdict A (Top Quintile) with a risk score of 21/100.
- System growing at 43.5% CAGR over 3 years with 34 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BB Franchise, LLC
- Ultimate parent
- None
- CEO experience
- 2014 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 4516 Mission Blvd, Suite C, San Diego, California 92109
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $1.1M
- vs $1.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
The Baked Bear franchisees operate a build-your-own dessert concept, likely focusing on customizable baked goods (cookies, brownies, etc.) and ice cream. Day-to-day operations involve managing inventory, staffing front-of-house counter service, fulfilling custom orders, and maintaining food safety standards in a QSR-style environment.
- CEO
- Robert Robbins
- Headquarters
- CA
- Founded
- 2014
- FDD year
- 2026
- States available
- 10
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $20K | $30K |
| Equipment, build-out, other | $225K | $806K |
| Total initial investment | $280K | $871K |
Source: The Baked Bear 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$108K
14.5% margin
Unlevered ROIC
18%
EBITDA / total invested capital
Payback
5.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $280K – $871K
- Near category avg vs category
- Liquid capital req'd
- $20K – $30K
- Near category avg vs category
- Franchise fee
- $28K – $35K
- Near category avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $53 |
| Transfer fee | $18K |
| Renewal fee | $1K |
| Total fee load | 7.5% of rev |
Financial Performance
- Avg gross sales
- $743K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Historical sales data for 27 franchised outlets
- Sample size
- 27 units
- vs category median 28
- Range (low → high)
- $453K→$1.5M
- Cohort dispersion (min → max)
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How The Baked Bear Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 34
- Opened
- 5
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.9%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- +13.8%
- Net unit change last year
- 3-yr CAGR
- +43.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- Projected new
- 6
- Franchisor's next-year forecast
- Transfer rate
- 2.9%
- Owners selling to other franchisees
- Termination rate
- 2.9%
- Franchisor-initiated terminations
- Ceased ops
- 2.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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 loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $1.4M
- Median loan
- $290K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Baked Bear's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-to-caution risk profile: While litigation-free with protected territory, the absence of Item 19 financial disclosures, modest growth trajectory, and wide investment variance prevent validation of profitability claims and make this franchise difficult to due diligence objectively.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
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 21 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to validate ROI or profitability claims
- 02MINORWide investment range ($279K-$870K) suggests inconsistent unit economics or hidden costs
- 03MINORModest unit growth of 13.8% YoY with only 34 locations indicates slow system expansion and potential market saturation
- 04MED6% royalty on $742K average revenue = $44.6K annually — combined with undisclosed operating costs, actual net margins are opaque
- 05MINOR5-year term is shorter than industry standard (typically 10 years), creating renewal uncertainty and higher re-franchising risk
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 5 hrs
- On-the-job training
- 89 hrs
- Training location
- franchised location
- Ongoing training
- Required
- Field support
- 48 hrs/yr
- On-site visits per year
- POS system
- Square Register with iPad
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square Register with iPad
Item 20 · call current owners
Franchisee Contacts
30 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Baked Bear · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Baked Bear franchise?
The total investment to open a The Baked Bear franchise ranges from $280K – $871K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Baked Bear franchise owners earn?
According to Item 19 of the The Baked Bear FDD, the average gross sales per unit is $743K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Baked Bear's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Baked Bear (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 The Baked Bear franchise locations are there?
As of their most recent FDD filing, The Baked Bear has 34 total units in the United States, including 33 franchised units and 1 company-owned units. 5 new units were opened in the latest reporting year.
Is The Baked Bear a good franchise to buy?
FranchiseVerdict rates The Baked Bear as a A-grade franchise with a risk score of 21 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.