How Much Does a House of Bread Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$198K – $584K
Franchise Fee
$35K
Royalty
6.0%
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for House of Bread is $35K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a House of Bread franchise requires a total investment of $198K – $584K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Ongoing Costs
Beyond the initial investment, House of Bread franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Gross Revenue). The advertising or brand fund contribution is 2.0% of gross sales.
What Can You Earn?
According to House of Bread's Item 19 financial performance representation:
Median gross sales: $667K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View House of Bread?
SBA Loans Issued
5
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. House of Bread has 5 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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