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Paris Baguette

Paris Baguette Family Inc.

Company Information

137 West Commercial Avenue Moonachie, New Jersey 07074

[email protected]

We were incorporated in Delaware on October 27, 2014, and our principal business address is 137 West Commercial Avenue, Moonachie, New Jersey 07074. We do business under our corporate name and under the name 'Paris Baguette.' Our agents for service of process in the states that require franchise registration are listed in Exhibit H. We sell franchises for Cafes that do business under the mark 'Paris Baguette.' We began offering new franchises on March 1, 2015, but two (2) affiliated-owned Cafes were converted to franchises on October 27, 2014. We do not operate any Paris Baguette Cafes, but our affiliates do, as discussed below. We have never offered franchises in any other line of business, and we are not engaged in any other business activity other than the offer of Paris Baguette Cafe franchises and the provision of certain products and services to franchisees in connection with opening or operation of their Cafes, provided however, if we determine that the operation of your business is in jeopardy, or if a default occurs, then in order to prevent an interruption in operations, we (or our affiliate) may temporarily operate the Cafe.

We offer the right to establish and operate Paris Baguette Stores under the Paris Baguette system (the “System”). The System includes distinctive exterior and interior design, decor, color scheme, and furnishings; uniform standards, specifications, policies and procedures for operations; methods for food preparation; quality and uniformity of the products and services offered; procedures for inventory, management and financial control; training and assistance; and advertising and promotional programs. Each Paris Baguette Store offers a variety of French inspired high-quality breads, pastries, pies, cookies, cakes, croquettes, royal pudding, sweet rice doughnuts and other artfully displayed desserts along with sandwiches, soups, salads and hot and cold beverages in sophisticated Parisian decor themed stores. Most menu items are available for purchase “to-go” but each location also has dine-in seating for guests. The Franchise Agreement (Exhibit C to this disclosure document) grants you the right to establish and operate one (1) Store at a specified single location (the “Location”) to be located within a designated area as described on a Site Selection and Acquisition Addendum to the Franchise Agreement (the “Site Addendum”). You must operate your Paris Baguette Store under the “Paris Baguette” Mark and use other trade names, service marks, trademarks, logos, and other symbols we designate (or may later designate) in writing for use in the System. We may periodically make changes to the System, including changes to the System's menus, methods, standards, signage, equipment and fixture requirements. You may have to make additional investments in the Store periodically during the term of the franchise if those kinds of changes are made or if your Store's equipment or facilities wear out or become obsolete, or for other reasons (for example, as needed to comply with a change in the System). All Stores must be developed and operated to our specifications and standards. As uniformity of products sold in Stores is important, you shall have no discretion in the products you sell.

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

6/10

Earning Transparency

7/10

Investment Accessibility

4/10

Summary of potential earnings

Average Revenue Per Unit

$1,528,459 / unit

Average Revenue During 2020
Franchise Type:

Restaurants (Sit-Down)

$492,460

Industry Low

$3,538,558

Industry High

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Paris Baguette Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $146,825 Maximum: $168,500

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $718,065 Maximum: $1,801,600

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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