Panera Bread franchise financing options

Overall costs for Panera Bread Bakery-Cafe run anywhere from $942,000 to $3,219,000. See how the costs break down and what funding options might be right for your new venture into the franchise foray.

Estimated initial costs

Our cost estimates are accurate as of 2021 from Franchise Direct and include opening fees and expenses only. The location you choose for your Panera Bread Bakery-Cafe franchise may result in higher or lower fees.

Franchise fees

Panera Bread Bakery-Cafe franchise fees total around $35,000, which beats out the $37,000 average for the 200 largest franchises nationwide.

Franchise	Cost
Franchise fee	$35,000 to $35,000
Royalty	5% of Net Sales.
Estimated total	$35,000 to $35,000

Equipment fees

Equipment fees total $686,000 for Panera Bread Bakery-Cafe. This costs more than the $180,023 average for the top 200 franchises.

Equipment	Cost
Equipment	$308,000 to $452,000
Fixtures	$48,000 to $154,000
Furniture	$49,000 to $156,000
Smallwares	$28,000 to $62,000
Signage	$18,000 to $97,000
Estimated total	$451,000 to $921,000

Real estate fees

Real estate will set you back $1,128,500 for Panera Bread Bakery-Cafe, which is more expensive than the average of $788,376 for the top 200 franchises.

Real estate	Cost
Real property	Varies to
Leasehold improvements	$402,000 to $1,855,000
Site selection costs	Panera's reasonable expenses, which are expected to range between $1,500 and $4,000.
Estimated total	$402,000 to $1,855,000

Inventory costs

Initial inventory for Panera Bread Bakery-Cafe shakes out to $22,000. This is less than the nationwide average of $53,119.

Inventory	Cost
Supplies and inventory	$19,000 to $25,000
Estimated total	$19,000 to $25,000

Administrative fees

Panera Bread Bakery-Cafe administrative fees total up to $209,000 — which comes in over the overall nationwide average of $6,761.

Admin	Cost
Optional technology systems	$0 to $172,000
Consultant fees	$35,000 to $211,000
Audit	Cost of audit, which is expected to range between $30,000 and $70,000 assuming the franchisee has maintained adequate books and records.
Estimated total	$35,000 to $383,000

All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2021.

How to finance

Since the estimated total for Panera Bread Bakery-Cafe is on the more costly side, we recommend following these steps to get fully financed:

1. Go to the Panera Bread Bakery-Cafe franchising website and review its financial requirements, including cash-on-hand requirements.
2. Reach out to Panera Bread Bakery-Cafe about in-house financing for franchisees.
3. If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $2,080,500 estimated opening costs.
4. Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
5. Once you settle on a lender, gather all required documents, including account statements and assets.
6. Apply for financing online or in person as required by the lender.

What types of financing is available?

You have several options when it comes to financing a Panera Bread Bakery-Cafe — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.

• Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
• Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Panera Bread Bakery-Cafe opening costs.
• SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.

Also check if Panera Bread Bakery-Cafe franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.

Compare small business lenders

You may not need financing to cover the estimated $942,000. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.

How Panera Bread Bakery-Cafe stacks up

Compare how Panera Bread Bakery-Cafe holds up against two similarly sized franchises.

	5u00e0Sec	Panera Bread Bakery-Cafe	Naturhouse
Average Franchise fees	NA	$35,000	NA
Average Equipment fees	NA	$686,000	NA
Average Real estate fees	NA	$1,128,500	NA
Average Training fees	NA	NA	NA
Average Inventory fees	NA	$22,000	NA
Average Marketing fees	NA	NA	NA
Average Licenses and permits fees	NA	NA	NA
Average Insurance fees	NA	NA	NA
Average Admin fees	NA	$209,000	NA
Average Personnel fees	NA	NA	NA
Average Other fees	NA	NA	NA

Bottom line

Panera Bread Bakery-Cafe franchise costs run a total of $2,080,500. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing read our guide to franchise financing.