Kolache Factory logo

Kolache Factory

Kolaches, pastries, coffee

Investment

$641,900

Initial Franchise Fee

$44,900

Units

60

Growth Rate

+1.7%

Overview About Investment Territories Support Operations Ranking History

Overview

Industry Food
Founded 1982
Franchising Since 2000
Parent Company Kolache Factory
Leadership Dawn Nielsen, COO
# of Employees at HQ 16

Units and Growth Chart

About Kolache Factory

Kolache Factory was founded in Houston, Texas, in 1981 by co-founders Jerri and John Banks after they recognized the need for fresh, high-quality breakfast. The company is committed to food innovation, craftsmanship, and authenticity by serving fresh kolaches and other specialty products. The brand sources gourmet coffees and diverse traditional pastries such as strudel niks, croissants, and cinnamon rolls.

At first, its co-founders struggled to convince customers to try their fresh, high-quality kolaches. Some people in Houston had never tasted this Eastern European treat before. After implementing various strategies for product awareness, however, it wasn't long before kolaches were in high demand for breakfasts, afternoon snacks, and business meetings. Today, the company has more than 55 units across the United States. Of those 55, over 25 are franchised locations.

Why You May Want to Start a Kolache Factory Franchise

As a Kolache Factory franchisee, you'll enjoy the independence of being your own boss, yet benefit from the company's support. The company's multi-week intensive training program may help you stay well-informed on a wide array of subjects, including food preparation, store operations, customer service, quality control, inventory control, marketing, and cash register systems.

Kolache Factory is a unique company, just like the products it serves, and is passionate about providing its customers with innovative products. The persistent quest for unique experiences using different choices, flavors, and ingredients may be what the factory is all about!

What Might Make a Kolache Factory Franchise a Good Choice?

To some, breakfast is king, commanding respect as one of the strongest-performing meals in the food industry. Pair this with a restaurant chain, and you may be in business! Stocked with more than 25 different kolache varieties, the company strives to produce high-end products that are tasty and affordable for every consumer. 

Some kolaches cost less than a few dollars each, with their more "expensive" kolache equaling out to less than $5.00. This price range may make it easy for someone to pick up a dozen or more for a meeting, breakfast at home, or just to enjoy themselves. 

To be part of the Kolache Factory team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for the existence of ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

How to Open a Kolache Factory Franchise

The ideal Kolache Factory candidate is passionate about owning a community-oriented business. Having restaurant or bakery experience will work in your favor, but it isn't always necessary. At the very least, however, you'll need to be a strong manager with significant business experience and strong social skills. With Kolache Factory, you have to be involved in daily operations; absentee ownership is not allowed.

Location may or may not be an issue for you, depending on where you're looking to franchise. The Kolache Factory is currently only targeting about a dozen states for franchise opportunities. You may need an area developer agreement for locations outside of this range.

The Franchise Disclosure Document can provide more in-depth information about its opportunities and ownership requirements. This information can help you weigh the pros and cons of moving forward with your own Kolache Factory franchise.

Investment Details

Initial Franchise Fee $44,900
Initial Investment $641,900 - $937,400
Net Worth Requirement $500,000
Cash Requirement $150,000
Royalty Fee 6%
Ad Royalty Fee 3%
Technology Fee 0
Term of Agreement 10 years
Is Franchise Term Renewable? Yes
Financing Third Party
Veterans Incentive N/A

Available Territories

Franchising opportunities available in the following regions

Training & Support Programs

Comprehensive training and ongoing support to help you succeed

Training

On the Job Training 220 hours
Classroom Training 7 hours

Ongoing Support

Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform

Marketing Support

Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations & Requirements

Key operational details and requirements for running this franchise

Is absentee ownership allowed? No
Can this franchise be run from home/mobile unit? No
Can this franchise be run part time? No
# of employees required to run 6-8
Are exclusive territories available? Yes

Ranking History

Kolache Factory performance in the Franchise rankings over recent years

Additional Rankings

Curious to know where Kolache Factory ranked on other franchise lists? Find out below.

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022