About COBS Bread Franchise
COBS Bread is a retail bakery franchise offering fresh, on premises baked goods made from proprietary recipes.
The brand serves the general public as well as local restaurants and food service establishments with daily baked breads, rolls, and other bakery products.
The franchise fee is $25,000, and the brand has been franchising since 2014.
COBS Bread Franchise Cost & Fees
Minimum Investment
$487K
Average Investment
$663K
Maximum Investment
$839K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 7% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Net Sales | National brand fund |
| Total Investment Range | $487,390 – $838,790 | Includes build-out, inventory, working capital |
The investment range of $487K–$839K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Net Sales) and marketing fee (3% of Net Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| INITIAL FRANCHISE FEE | $25,000 | $25,000 |
| TRAINING FEE | $10,000 | $10,000 |
| TRAINING ATTENDANCE COSTS | $0 | $15,000 |
| ADDITIONAL TRAINING COURSES | $200 | $400 |
| BAKERY ESTABLISHMENT COSTS: CONSTRUCTION OF LEASEHOLD IMPROVEMENTS, FIT-OUT, SIGNAGE | $200,000 | $320,000 |
| EQUIPMENT | $180,000 | $250,000 |
| PROJECT MANAGEMENT FEE | $7,500 | $7,500 |
| LEGAL AND PROFESSIONAL FEES, INCLUDING DESIGN AND ARCHITECT FEES | $20,000 | $35,000 |
| UTILITIES DEPOSITS AND HOOK-UPS (NOTE 1) | $0 | $45,000 |
| PERMITS AND LICENCES | $3,000 | $4,000 |
| MONTHLY SUBLEASE RENT | $1,500 | $9,000 |
| SECURITY DEPOSIT | $0 | $20,000 |
| POINT OF SALE SYSTEM INITIAL COST | $10,000 | $17,000 |
| FIRST MONTH’S BREADY LICENSE FEE | $290 | $290 |
| INVENTORY AND SUPPLIES | $4,000 | $7,000 |
| OPENING ADVERTISING AND PROMOTION | $5,000 | $5,000 |
| INSURANCE PREMIUMS FOR FIRST YEAR | $3,400 | $3,600 |
| ADDITIONAL FUNDS (SEE NOTE 2) | $17,500 | $65,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | A percentage of the gross sales price depending on the year of sale: Year 1 - 10%, Year 2 – 9%, Year 3 – 8%, Year 4 – 7%, Year 5 – 6%, Year 6 and beyond – 5%. Reimbursements of our legal costs. An amount sufficient to pay your suppliers. A security retention sum of $10,000. |
| Renewal Fee | Our then current Franchise Purchase Fee (currently $25,000) |
| Technology Fee | $290 per month |
| Audit Fee | Our cost of examination and audit, including all costs of our employees and any outside accountant, auditor or representative |
| Insurance | $1,500 to $2,500 per year |
| Additional Training Courses | $200 to $400 per course |
| Additional Training or Assistance | Based on cost to us |
| Late Payment Fees | Interest at prime plus 3% and an administrative service fee of $50 per month |
| Late Reporting Fee | An administrative service fee of $50 per month |
| Indemnification | All liability, damages and costs, including attorneys’ fees |
| Liquidated Damages – Non-Operation | Amount of royalty and advertising and marketing contribution payable to us for the same trading day in the previous year plus 10% |
| Liquidated Damages – Non-Compete Breach | The amount of then current initial Franchise Fee (currently $25,000) |
| Management Fee | Based upon cost and expense recovery, plus cash deficit recovery |
| Rent | Premises rent due under the Sublease or Sublease and Business Lease |
| Overholding Fee | Equal to the then current initial Franchise Fee for a ten year term divided by 120 months |
| Late Payments (Sublease) | 18% per annum |
| Late Payments (Head Lease) | Our costs and expenses incurred under the Head Lease |
| Taxes | Varies by State |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately 640 hours (80 eight-hour days) over a four-month period including a three-week orientation |
| Classroom Training | 590 hours |
| On-the-Job Training | 50 hours |
| Training Location | a bakery environment at a COBS Bread Bakery location in Canada or the United States designated by us |
| Additional Training | If requested by you or if we consider it necessary, at your cost, provide supplementary training to you, your Bakery Principal and your employees. We may prescribe additional courses which you must successfully complete at your own cost and expense. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | typically limited to the shopping centre or the strip shopping area (normally one whole block) |
| Description | The protected Territory is typically limited to the shopping centre or the strip shopping area (normally one whole block) in which the COBS Bread Bakery is situated. Within this territory, the franchisor and its affiliates may not operate or grant franchises for substantially the same business without the franchisee's prior consent. However, the franchisor and other franchisees are free to solicit customers from anywhere. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Variable, typically 10 years (as implied by renewal fee calculation) |
| Renewal Term | Franchisor may offer renewal on specified terms at least 3 months prior to expiry |
| Renewal Fee | Our then current Franchise Purchase Fee (currently $25,000) |
| Renewal Conditions | If renewal notice is given, Franchisee has one month to advise if will accept offer and terms; within 30 days of receiving new Franchise Agreement, and other franchise documents (all of which may have materially different terms and conditions), will sign and return with payments required, and will sign release of Franchisor under all previous agreements. |
| Transfer Fee | A percentage of the gross sales price depending on the year of sale: Year 1 - 10%, Year 2 – 9%, Year 3 – 8%, Year 4 – 7%, Year 5 – 6%, Year 6 and beyond – 5%. Reimbursements of our legal costs. An amount sufficient to pay your suppliers. A security retention sum of $10,000. |
| Transfer Conditions | Transfers subject to Franchisor sole discretion. Sale to other than Franchisor, conditioned upon Franchisor approval of purchaser as Franchisee, and requires: Franchisee, purchaser and its Bakery Principal demonstrate that purchaser and Bakery Principal, and if a corporation its directors and shareholders, are reputable and responsible, and meet financial and other Franchisee qualifications; purchaser, Bakery Principal, and if corporation its directors and shareholders have sufficient experience, and have completed sufficient training to operate a COBS Bread Bakery; all parties enter into an agreement, in Franchisor’s approved form, to terminate the franchise, provide a general release of all claims by Franchisee and Bakery Principal of Franchisor under all agreements; Franchisor and purchaser, Bakery Principal enter into new Franchise Agreement in then-current form with guarantees by directors and shareholders if corporation, for term ending no earlier than same day as current Franchise Agreement; landlord consents if necessary under Bakery Premises Lease; Franchisee removes any bakery equipment not authorized, and replaces with bakery equipment which is authorized; Franchisee pays: transfer fee (unless N/A because applies under Sublease and Business Lease with Franchisor); amount of legal costs of Franchisor regarding sale; monies owing to Franchisor; Security Retention Sum; amounts to repay debts owed to suppliers. Transferee pays us a rewrite fee of $2,500 per year to extend the term of the franchise that is being purchased from you to a 10 year term (e.g. if there are 3 years left in the term of your franchise agreement, the transferee would pay us 7 x $2,500 = $17,500). Security Retention Sum (currently $10,000 which Franchisor holds for 12 months after completion of sale as security for unknown obligations); and Franchisor will give written notice to Franchisee of any creditor claim; if no Franchisee notice within 7 days of bona fide dispute, Franchisor is entitled to settle claim; and upon expiry of 12 months, Franchisor refunds balance of Security Retention Sum to Franchisee. |
| Termination for Cause | Upon the happening of a Termination Event, the Franchisor may, at its option: (a) give written notice of immediate termination; or (b) give written notice of deferred termination; or (c) give a Mandatory Sale Notice. Termination Events include: not entering ancillary agreements within 6 months, not completing training within 6 months, loss of required licenses, insolvency/bankruptcy, voluntary abandonment, conviction of a Serious Offence, endangering public health/safety, fraudulent operation, termination of another franchise agreement with franchisor, or failure to remedy a breach within specified timeframe (usually 30 days). |
| Non-Compete Period | 24 months after the expiry or termination of this Agreement |
| Non-Compete Details | Franchisee, Bakery Principal, and Guarantors must not, during the term and for 24 months after termination/expiry, directly or indirectly engage in any Competitive Business (defined as offering baked goods/breads where sales exceed 30% of gross sales) at the Bakery Premises, within a 3 km radius of the Bakery Premises, or within a 3 km radius of any COBS Bread Bakery in the same State (existing or under development at the time of execution/expiry/termination). Also, they must not solicit or employ franchisor/supplier/other franchisee employees for 24 months after termination/expiry. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | One of your principals, normally the controlling principal, must be designated as the “Bakery Principal”, who will: (i) act as a guarantor; (j) devote full time and attention to the operation and management; (k) satisfactorily complete training; (l) be bound personally by obligations; and (m) be available at all reasonable times to communicate, meet and consult with franchisor employees. |
| Required Suppliers | All products or services that you purchase or lease must comply with our standards and specifications and our supplier requirements. You will be required to purchase all materials, ingredients, packaging supplies, uniforms, printing, communication and information technology services and certain other products and services from our approved suppliers. |
| Supply Restrictions | For some of these products we may designate one supplier from whom you must purchase. If you want to purchase or lease from an unapproved supplier, it is our policy that you or the supplier must send us a written request for approval. |
| Franchisor Revenue from Suppliers | For the fiscal year 2022, we earned $0 in revenue from Project Management. In the 2022 fiscal year, we received $9,662 in rebates from suppliers. This represents 5.3% of our total revenue for that year which was $183,441. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | We offer direct financing through a Sublease for the Bakery Premises, where we enter into the Head Lease and sublease to you. We also offer a Sublease and Business Lease Agreement, where we purchase business assets and lease them to you with an option to purchase. Additionally, we may provide discretionary partial financing through a Loan Agreement and General Security Agreement, typically supplementing bank financing. We do not guarantee third-party obligations. |
COBS Bread Franchise Earnings — Item 19
Average Revenue
$1.2M
Median Revenue
$1.3M
Revenue Range
$482K – $2.2M
Sample Size
131 units
Past financial performance does not guarantee future results. Individual results will vary.
COBS Bread Litigation & Risk Flags
Clean Litigation RecordCOBS Bread has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
COBS Bread System Growth
Total Units
150
Franchised
148
Company-Owned
2
COBS Bread currently operates 148 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 6 | 0 | 125 |
| 2021 | 12 | 1 | 134 |
| 2022 | 16 | 0 | 150 |
Transfers: 5 | Closures: 0
State Registrations
Registered in 21 states: CA, CT, DE, FL, HI, IL, IN, MD, MI, MN, NE, NY, ND, OR, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$183K
COBS Bread Franchise — FAQ
The total investment to open a COBS Bread franchise ranges from $487,390 to $838,790, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
COBS Bread charges a royalty fee of 7% of Net Sales of gross sales, plus a 3% of Net Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the COBS Bread Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from COBS Bread to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, COBS Bread franchise owners report average revenue of $1.2M and median revenue of $1.3M. This is based on a sample of 131 units. Past performance does not guarantee future results.
COBS Bread has been franchising since 2014. The FDD shows an investment range of $487,390-$838,790, a 7% of Net Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 and the total investment ranges from $487,390 to $838,790 depending on location size and market. A minimum of $17,500 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from COBS Bread and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with COBS Bread or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com