Magnolia Bakery Franchising

7/25/2019 Magnolia Bakery Franchising

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FRANCHISING

The original Magnolia Bakery opened in 1996 in the West Village of New York City.


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FRANCHISING FRA

Since opening in 1996, Magnolia Bakery has

become the most widely recognized bakery in the world.

Renowned for small-batch baking and handcrafted baked

goods, charming vintage atmosphere and outstanding

customer service, Magnolia Bakery has created a unique

sensory experience that has made it a destination.

Magnolia Bakery is a powerful brand and has been

featured in nearly 1,500 stories in the past year alone,

which have reached 6 billion people. With visits to

our website from 165 countries, interest in the

Magnolia Bakery brand is worldwide and the brand is

ready to take the next step on the global stage.

Magnolia Bakery has proven its viability with success

in a variety of locations, including street level retail,

transportation hubs, malls and department stores.

Bakery prototype adaptability in a cross-section of

environments, combined with Magnolia Bakerys brand

recognition, scalability, innovative product, and

high caliber management team, position

Magnolia Bakery for continued global expansion.

Today, Magnolia Bakery has locations in the U.S.

(New York City, Los Angeles, Honolulu, and Chicago),

Japan, Korea, Mexico, Russia, Kuwait,

Lebanon, UAE, Saudi Arabia and Qatar.

OURSTORY


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FRANCHISING FRA

Magnolia Bakery is the only American bakery

positioned as an international luxury lifestyle

brand, accessible across all cultures and

demographics. Magnolia Bakerys global reach

is exemplified through its numerous partner-

ships with iconic brands, media coverage and

pop culture references, including:

PARTNERSHIPS

POP CULTURE REFERENCES

BRANDREACH

MEDIA HIGHLIGHTS

LIFESTYLE

Martha Stewart Weddings Middle East Wedding Desserts

Us Weekly Valentines Day Gift Guide

Time Out Tokyo Halloween Desserts

Huffington Post Swarovski Cupcake

Buzzfeed Best Banana Pudding

BUSINESS

Crains New York Fast 50 Two years in a row

Inc. Magazines 500/5000 List Three years in a row

Forbes 7 Companies that Blew Up

CNN International Magnolia Goes Global

Wall Street Journal

Magnolia Bakery to Sell Franchisees Overseas


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FRANCHISING FRA

Magnolia Bakery offers a wide

variety of freshly baked desserts offering

over 150 baked goods, including

banana pudding, cakes, pies, muffins,

cheesecakes, cookies and brownies.

The volume of recipes allows each

bakery location to tailor daily product

offerings to local customer preferences.

Beyond Magnolia Bakerys retail presence,

opportunities exist with catering, including

tiered wedding cakes, dessert tables,

custom cakes and cupcakes.

Magnolia Bakery also selectively engages

in white-label wholesale (unbranded).

PRODUCTMIX


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FRANCHISING FRA

Magnolia Bakery immerses customers is a full sensory

environment. Our objective is to greet every customer

warmly, as if they were a guest in our kitchen. We bake

in small batches on the premises just like customers

would at home. From the aroma of freshly baked cookies

coming out of the oven to the cakes and cupcakes being

decorated in full customer view, Magnolia Bakery is

more than just a bakery - it is an experience.

CUSTOMERSERVICE

& PRODUCTQUALITY


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FRANCHISING FRA

SELECTLOCATIONS

DUBAI

TOKYO

KOREA

MOSCOW

NYC

BEIRUT

DOHA

BEIRUT

All Magnolia Bakeries are designed to

reflect a vintage, old-fashioned, warm and

welcoming aesthetic. So, no matter where

you are in the world, when you walk into a

Magnolia Bakery, youll feel at home.


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FRANCHISING FRA

FAQS

Is a Magnolia Bakery franchise the right

opportunity for you?

Having passion for the Magnolia Bakery brand is animportant qualifier. Beyond passion, we look for peo-

ple that have an existing organizational infrastruc-

ture and experience owning and managing retailmulti-unit food and beverage businesses. You must

meet these criteria points as well as the minimumfinancial requirements for serious consideration.

What markets are currently available?

Magnolia Bakery is currently offering select market

opportunities internationally. Magnolia Bakery is notfranchising domestically within the United States.

Target markets include: Canada, UK, Sweden,

Denmark, France, Germany, Italy, Spain, Turkey,Egypt, India, Hong Kong, China, Thailand,

Singapore, Philippines, Malaysia, Australia,

Argentina, and Colombia.

How long has Magnolia Bakery been in business?

Magnolia Bakery opened its doors in New YorksWest Village in 1996. After expanding in New York

City, Magnolia Bakery entered into its first i nterna-tional licensing agreement in 2010 and has grown

to over 28 locations worldwide, with plans to add

another 20 locations in 2016.

What are the financial requirements for becoming a

Magnolia Bakery franchisee?

Becoming a Magnolia Bakery franchisee requiresminimum liquid capital of $200,000 per bak-

ery location. In addition, a minimum net worth of

$400,000 per bakery is required in the form ofassets that can be used to collateralize a loan.

Magnolia Bakery has strict upfront capital require-

ments to ensure that not only are there resourc

develop the first bakery in the market, but tha

are reasonable assets to fully develop the marwithin the scheduled timeframe.

What is the cost of opening a Magnolia Bakery

The initial investment in developing a standarMagnolia Bakery ranges from approximately

$650,000 to $875,000. This range includes

and construction costs, equipment, small-warinitial ingredients, and pre opening training co

Costs vary based on the size of the bakery proand local development costs.

What is the Magnolia Bakery franchise fee?

The franchise fee is $100,000 per unit. With

multi-unit market agreements, we collect oftotal fee up front, and the balance for each un

the time of opening.

Can Magnolia Bakery help with financing?

At this time, Magnolia Bakery does not providassistance with financing.

What are the Magnolia Bakery royalty and

marketing fees?

Royalties are 8% of net sales and marketing fe2% of net sales. Currently, Magnolia Bakery do

collect the marketing fee and requires that amto be spent by the franchisee in their local ma

How do I find a site for developing my first

Magnolia Bakery location?

Finding the right location for your bakery is onthe key determinants of success. Magnolia Ba

provides assistance by identifying and approvitrade areas we believe fit our requirements. W

provide a complete site selection guide to our

franchisees to assist them with identifying qualocations. Once you have identified sites for co

eration, Magnolia Bakery will review the submsite packages and visit the market to formally

prove the sites.

What is the typical size of a Magnolia Bakery?

Magnolia Bakery has several prototype designavailable for consideration. Our standard bake

range is between 1,500 and 2,000 sq ft(140 180 sq mtrs).


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FAQS

Will I have a protected territory for my franchise?

Yes. That will be discussed during further qualifyingconversations.

What is involved in training?

Magnolia Bakery requires that the franchisee designate

both a General Manager (GM) and Head Chef (HC) prior toopening the first bakery. Both the GM and HC will

complete online training prior to spending approximately 5weeks in New York City for hands on comprehensive bak-

ery training. During training, the GM and HC will receivecomprehensive exposure to customer service, operations,

marketing/PR, dcor, supply chain and IT.

What support will I receive after initial training is

completed?

During the development process, the home office Mag-nolia franchise support team will guide you toward your

opening. This includes design and development, supply

chain, PR and marketing, and operations planning. Priorto opening, Magnolia Bakery will send seasoned trainers

to your location to provide on-site pre-opening support toensure your entire team has received fundamental training

required to operate your bakery successfully.

On an ongoing basis, Magnolia Bakery provides a team

approach to franchise support. The team is comprisedof a Director of Operations, a Front of the House

technical trainer, a Back of the House technical train-

er, supply chain manager and marketing/pr manager.Regularly scheduled update conference calls, as well as

in-market visits during the year ensure the proper level ofattention and support.

What are the steps in the Magnolia Bakery fra

application process?

Please review our minimum requirements andmarkets targeted for expansion. If you meet th

ments and wish to operate Magnolia Bakery inthe approved and targeted markets, we encou

to complete the franchise questionnaire.

Once we have reviewed the questionnaire and

determined that you are a proper fit for Magnoery, we will contact you to schedule a call to d

greater detail, the opportunity with Magnolia

Can you tell me more about the investment o

specifically, how much money can I make?

This depends on a multitude of factors. We ca

guarantee or, for that matter, even suggest a rinvestment. However, we do provide performa

information in the Financial Disclosure Docum

which is provided to qualified franchisee prosthe appropriate point in the process.

How do I get a copy of the Franchise Disclosu

Document (FDD)?

Once you have filled out the questionnaire, w

review your qualifications and suitability as a

prospective franchisee based on the markets wtargeting for future development. If we find th

are a match, we will provide the FDD shortly t

How soon will I know whether I am being con

for a franchise?

As soon as you submit the properly complete

questionnaire, we will review it and get back twithin 5 business days with a provisional resp


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Documents

Magnolia Bakery Franchising