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PANERA BREAD BAKERY-CAFÉ

Food & Dining · independent · est. —

Panera Bread is a fast-casual bakery-cafe chain serving soups, salads, sandwiches, and fresh-baked breads and pastries. A franchisee develops and operates full-size cafes with dine-in, drive-thru, and digital ordering, typically committing to multiple units in a market.

PANERA BREAD BAKERY-CAFÉ net unit count grew +2.9% from 20232025 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Proven & steady

Distress

0
STABLE

A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The standout in the record: owner turnover is low.

Exit rate · latest year

2.9%

vs 8.6% across 137 food & dining systems

Cost to open

$1.3M–$4.6M

Item 7 total investment range

SBA loan defaults

No loan record

no SBA 7(a)/504 loans found for this brand

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Fair
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Weak
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Not Disc.
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2023–2025

+2.9%
2,15120232,18520242,2142025

Survival record

FDD Item 20 · outlet status by year

In fiscal 2025, 32 of 1,105 franchised outlets left the system — a 2.9% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202320242025
Outlets at start2,0942,1512,185
Opened472433
Transfers35163
Terminations121832
Non-renewals000
Reacquired by franchisor0110
Ceased — other reasons1130
Outlets at end2,1512,1852,214
Net change+57+34+29

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $50K franchise fee (Item 5) and a total investment of $1.3M–$4.6M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$1.3M–$4.6M

all-in investment range

Franchise fee (Item 5)

$50K

upfront, one-time

Royalty (Item 6)

5%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$50K

5% of sales, before profit

Over a 10-yr term

$500K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for PANERA BREAD BAKERY-CAFÉ with an independent CPA

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for PANERA BREAD BAKERY-CAFÉ. That's a good sign — but it reflects news coverage, not a guarantee.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing PANERA BREAD BAKERY-CAFÉ's numbers, including talking you out of a bad deal.

Talk to an independent CPA before you buy →

PANERA BREAD BAKERY-CAFÉ franchise questions, answered from the filings

What percentage of PANERA BREAD BAKERY-CAFÉ franchises closed last year?

In PANERA BREAD BAKERY-CAFÉ's latest FDD Item 20 (fiscal 2025), 32 of 1,105 franchised outlets left the system — an annualized exit rate of 2.9% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a PANERA BREAD BAKERY-CAFÉ franchise cost?

Per PANERA BREAD BAKERY-CAFÉ's 2026 FDD, buying in requires an initial franchise fee of $50K (Item 5) and a total initial investment of $1.3M–$4.6M (Item 7).

What royalty does PANERA BREAD BAKERY-CAFÉ charge?

PANERA BREAD BAKERY-CAFÉ charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.

Does PANERA BREAD BAKERY-CAFÉ disclose earnings (Item 19)?

Yes — PANERA BREAD BAKERY-CAFÉ makes a financial performance representation in Item 19 of its 2026 FDD. Read it closely: franchisors choose which units and which metrics to include.

Is PANERA BREAD BAKERY-CAFÉ a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk