About La Madeleine Franchise
La Madeleine is a French inspired bakery cafe franchise that has been franchising since 2011, offering a menu of freshly baked breads, pastries, soups, salads, and entrees inspired by traditional French home cooking.
The restaurants feature a warm, rustic ambiance that transports guests to the French countryside.
La Madeleine is backed by Le Duff America, Inc.
La Madeleine Franchise Cost & Fees
Minimum Investment
$1.2M
Average Investment
$1.7M
Maximum Investment
$2.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 to $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% of Gross Sales, currently: 3% of Gross Sales for Brand Marketing Fund (“BMF”) and 1% of Gross Sales for Local Store Marketing (“LSM”). For la Madeleine Cafés at Non-Traditional Facilities, up to 1% of Gross Sales (currently, 0% of Gross Sales). | National brand fund |
| Total Investment Range | $1,230,360 – $2,254,160 | Includes build-out, inventory, working capital |
The investment range of $1.2M–$2.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Up to 4% of Gross Sales, currently: 3% of Gross Sales for Brand Marketing Fund (“BMF”) and 1% of Gross Sales for Local Store Marketing (“LSM”). For la Madeleine Cafés at Non-Traditional Facilities, up to 1% of Gross Sales (currently, 0% of Gross Sales).) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Real Property | $0 | $0 |
| Design, Permitting Fees & Liquor License | $56,000 | $75,000 |
| Building and Leasehold Improvements | $704,000 | $873,000 |
| Security Camera System | $0 | $10,000 |
| Signage and Awnings | $22,000 | $43,000 |
| Furniture, Fixtures & Equipment | $271,000 | $407,000 |
| Technology Suite | $43,800 | $107,800 |
| Initial Technology Administrative Fee | $2,860 | $2,860 |
| Site Work | $0 | $300,000 |
| Start-up Inventory & Supplies | $31,700 | $51,500 |
| Grand Opening Advertising | $10,000 | $30,000 |
| Insurance | $7,000 | $25,000 |
| Training & Managers’ Salary | $19,000 | $54,000 |
| Utility Deposits/ Licenses | $3,000 | $5,000 |
| Legal and Accounting | $5,000 | $30,000 |
| Additional Funds – 3 months | $15,000 | $200,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Under the Franchise Agreement, 50% of the then-current initial franchise fee for each Café being transferred. Under the Development Agreement, 50% of the then-current initial franchise fee for a Café. Under the Non-Traditional Addendum, $500. |
| Renewal Fee | 50% of the then-current Initial Franchise Fee for la Madeleine Cafés. |
| Technology Fee | Currently, $2,500 per la Madeleine Café (increases set by vendor) |
| Audit Fee | Actual cost of audit, including travel, lodging, wages and reasonable accounting and legal costs, plus interest on any underpayment at the Default Rate. |
| Administrative Fee | Currently, $418 per month, but may increase as new services, platforms, and technologies are added. Any time a new service, platform, and/or technology are added, we may increase this fee by up to 10%. We do not expect to increase this fee more than once per year. |
| Late Fee and Interest | $100 per week plus interest at the rate of one and one-half percent (1.5%) per month or the maximum rate permitted by state law, whichever is less (“Default Rate”) |
| Inspection Fee | Our actual costs and out-of-pocket expenses if we choose to conduct a quality assurance audit or inspection of the Café. |
| Alternative Supplier | Our reasonable costs |
| Tech Checks | Our, LDAMC’s or our designee’s actual costs and out-of-pocket expenses to complete an audit Annually |
| Costs, Attorneys’ Fees and Expenses | Varies |
| Insurance | Actual cost of the insurance and our reasonable expenses |
| Additional Training | Currently, $600 per week (training class fee). This fee may increase if our costs increase. |
| Indemnification | Varies |
| Liquidated Damages | 3 years’ worth of projected royalty fees |
| Leadership Conference and/or quarterly meetings | Varies |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 6 weeks |
| Classroom Training | 48 |
| On-the-Job Training | 252 |
| Training Location | Certified Training Café we designate and/or our Corporate Office in DFW |
| Additional Training | Franchisees may send additional individuals to Management Training on a space-available basis for a fee of $600 per week, plus expenses (transportation, lodging, and meals). This fee also applies if the franchisor requires re-training due to failure of certification. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area |
| Exclusive Territory | No |
| Territory Size | a radius of three (3) miles from the front door of the Premises |
| Description | Under the Franchise Agreement, you do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels. However, as long as you are in compliance, the franchisor will not establish new la Madeleine Cafés or franchise others to do so within your designated "Protected Area," typically a three-mile radius from the front door of the Premises (smaller in urban areas). The franchisor and its affiliates retain all rights to operate and franchise la Madeleine Cafés outside this area, operate non-traditional facilities, sell similar products through alternative channels, and use the brand in other lines of business. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | The later of (i) 10 years from the date the Café opens for business to the public at the Premises or (ii) the expiration of the initial lease agreement governing the Premises. |
| Renewal Term | The lesser of ten (10) years or the remaining term (including any extensions) of the lease for the Premises. |
| Renewal Fee | one-half of the then-current applicable Initial Franchise Fee |
| Renewal Conditions | Franchisee must provide written notice of intent to renew 6-9 months before term expiration, complete all required modifications/renovations to the Café, not be in default, satisfy all monetary obligations, sign the then-current Franchise Agreement and Guaranty, sign a general release, and comply with qualification and training requirements. |
| Transfer Fee | 50% of the then-current initial franchise fee for each Café being transferred |
| Transfer Conditions | All accrued monetary and outstanding obligations must be satisfied, no default exists, the transferor must execute a general release, the transferee must assume obligations or enter a new Franchise Agreement, the transferee must meet franchisor's qualifications and standards, and the transferee (and Lead Operator if entity) and any employees who have not previously completed training must complete all required training programs at their expense. |
| Termination for Cause | Material defaults include insolvency/bankruptcy, failure to complete required training, failure to locate/submit a lease within 60 days, failure to open within 16 months, abandonment, felony conviction, unapproved transfers, threat to public safety, non-competition violation, disclosure of confidential information, false records, refusal of inspection, repeated defaults, and cross-default with other agreements. Non-payment of fees or failure to submit financial information can lead to termination with 10 days' notice. Emergency closing can occur without prior notice if unsafe products/procedures are used. |
| Non-Compete Period | one (1) year after the expiration or termination of this Agreement or the approved transfer of this Agreement to a new franchisee |
| Non-Compete Details | During the agreement term, neither you nor your owners may directly or indirectly own, operate, be employed by, or have an interest in any "Competing Business" (defined as deriving 15% or more gross revenue from specific bakery/café items) anywhere. After termination/expiration/transfer, this restriction applies for one year within 10 miles of the Premises or 5 miles of any other la Madeleine Café. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is a business entity, a designated "Lead Operator" must own or have the right to own at least 10% of the equity, have authority over operational decisions, complete Management Training, and have at least 3 years of multi-restaurant management experience. The Lead Operator must personally participate daily onsite at the Café and oversee operations. A general manager and at least one other manager/supervisor who completed Management Training must always be on duty during operating hours. |
| Required Suppliers | Franchisees must purchase food and beverage products, ingredients, packaging materials, menus, signs, fixtures, Technology Suite, equipment, furniture, smallwares, décor items, and other products and services from designated or approved suppliers, which may include the franchisor or its affiliates. Specific designated suppliers include Sysco (foodservice), NPC (produce), a designated smallwares distributor, Bridor (bread products), GCI (soups and salad dressings), a designated coffee/espresso supplier, PepsiCo (fountain and bottled soft drinks), a designated gift card processing vendor, a designated Wi-Fi vendor, and a designated media system for background music. |
| Supply Restrictions | The franchisor may restrict the sourcing of current and future items. Franchisees must use Sysco for all products it carries, NPC for produce, and designated smallwares distributors. All bread products must be from an approved supplier (Bridor is one). Soups and salad dressings must be from an approved supplier (GCI is the only approved supplier). Coffee and espresso must be from a designated/approved supplier. All fountain and bottled soft drinks must be PepsiCo products. Franchisees must use a designated vendor for gift card processing, Wi-Fi, and background music. |
| Franchisor Revenue from Suppliers | For the fiscal year ending December 26, 2024, LDAMC received $242,906.29 from technology support service fees and $332,668.47 from franchisee reimbursements for ongoing technology suite costs, plus $2,468.98 for technology suite equipment (pass-through, no profit). Bridor had revenue of $2,725,734 and GCI had revenue of $6,170,393 from sales to franchisees. The franchisor and/or its affiliates may derive revenue from promotional allowances, volume discounts, and other payments from designated/approved suppliers. In 2024, $559,378 (5.1% of overall revenue of $10,881,395) was received from vendors for leadership conferences and meetings. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing to franchisees. We will not guarantee your promissory note, lease, or other obligation. |
La Madeleine Franchise Earnings — Item 19
Average Revenue
$2.4M
Median Revenue
$2.3M
Revenue Range
$1.2M – $5.2M
Sample Size
50 units
Past financial performance does not guarantee future results. Individual results will vary.
La Madeleine Litigation & Risk Flags
Clean Litigation RecordLa Madeleine 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.
La Madeleine System Growth
Total Units
91
Franchised
62
Company-Owned
29
La Madeleine currently operates 62 franchised locations and 29 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 1 | 0 | 60 |
| 2023 | 3 | 1 | 62 |
| 2024 | 2 | 4 | 60 |
Transfers: 2 | Closures: 13
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$79.5M
Net Income
$670K
Total Assets
$69.0M
Audited by Grant Thornton LLP for year ending December 31, 2024.
La Madeleine Franchise — FAQ
The total investment to open a La Madeleine franchise ranges from $1,230,360 to $2,254,160, per their Franchise Disclosure Document. This includes the initial franchise fee of $20,000 to $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
La Madeleine charges a royalty fee of 5% of Gross Sales of gross sales, plus a Up to 4% of Gross Sales, currently: 3% of Gross Sales for Brand Marketing Fund (“BMF”) and 1% of Gross Sales for Local Store Marketing (“LSM”). For la Madeleine Cafés at Non-Traditional Facilities, up to 1% of Gross Sales (currently, 0% of Gross Sales). contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the La Madeleine 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 La Madeleine to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, La Madeleine franchise owners report average revenue of $2.4M and median revenue of $2.3M. This is based on a sample of 50 units. Past performance does not guarantee future results.
La Madeleine has been franchising since 2011. The FDD shows an investment range of $1,230,360-$2,254,160, a 5% of Gross 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 $20,000 to $40,000 and the total investment ranges from $1,230,360 to $2,254,160 depending on location size and market. 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 La Madeleine and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with La Madeleine or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com