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MAGNOLIA BAKERY
Magnolia Bakery franchises retail stores specializing in classic American desserts like banana pudding, cupcakes, cakes, pies, and cheesecakes, along with coffee, tea, beverages, and related merchandise such as consumer packaged goods and apparel. They operate in two formats: Flagship Stores with on-site production and smaller No-Bake Stores using off-site production, offering take-away, delivery, limited seating, catering, and event services. The business model grants franchises to use their proprietary system, trademarks, and operating procedures in high-traffic urban and suburban locations, targeting dessert enthusiasts, event planners, and the general public.
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Franchise Costs
6% royalty + 2% marketing fund (up to 3%)
Financial Performance
Item 19 Financial Performance
Data Based On: Data is based on ten Affiliate-owned Bakeries open for the full fiscal period from January 1, 2024 to December 29, 2024, including eight Flagship Stores and two No-Bake Stores. EBITDA figures and profit range estimations are based on a subset of eight Affiliate-owned Flagship Stores.
* Average gross revenue and median gross revenue are from Table 1 for ten affiliate-owned bakeries. Average EBITDA and EBITDA margin are calculated weighted averages for eight flagship affiliate-owned bakeries from Table 5. Best guess profit range is estimated by applying operating expense percentages (74% to 84% of gross revenue) from Table 5's city-specific 'Total Costs and Expenses' to Table 1's average gross revenue ($4,459,911), then subtracting the 'Additional Expenses for Franchised Magnolia Bakeries' ($361,940.88) from Table 4. Low end uses 84% operating costs, high end uses 74% operating costs.
Extracted Item 19 Section
Avg. Revenue: $4,459,911
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Unlock financial performance dataMAGNOLIA BAKERY Franchise Analysis
Magnolia Bakery's franchising arm, launched in 2011, promises a slice of New York-style dessert fame but faces a stark reality check in its expansion trajectory. Item 19 discloses revenue figures that turn heads, yet the system's dramatic downsizing raises eyebrows about long-term viability. Can a brand this iconic sustain franchise growth, or is it better suited to corporate control?
Franchising since 2011, Magnolia Bakery has struggled to scale its franchise network, with only 1 franchise location active against 10 corporate-owned stores as per the 2025 FDD. The system shrank from 10 locations in 2023 to just 3 in 2024—a whopping -70% contraction—signaling potential operational challenges or strategic retreat to company ownership. Item 19 reveals average gross revenues of $4,459,911 and medians at $4,192,714 across reporting units, but with an EBITDA margin of 0%, profitability hinges on tight cost controls. Estimated profits range from $351,645 to $797,636, impressive on paper for high-traffic dessert spots but unproven at scale with so few franchisees.
Entry costs start with a $49,000 franchise fee, plus ongoing 6% royalties and 2% brand/ad fund (capped at 3% max), positioning it mid-range for food retail. The two formats—Flagship Stores with on-site baking and leaner No-Bake outlets—target urban dessert lovers, but the tiny franchise footprint and contraction scream caution: high revenues might reflect corporate efficiency not replicable by owners. For investors eyeing $4M+ sales potential, this FDD paints a high-risk, high-reward gamble amid evident system health issues.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How MAGNOLIA BAKERY Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
MAGNOLIA BAKERY Current | N/A | $49K | 6.0% | 1 |
| RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS | $315K – $713K | $35K | 6.5% | 569 |
| MENCHIE'S | $180K – $515K | $54K | 6.0% | 295 |
| DIPPIN' DOTS | $139K – $399K | $35K | 6.0% | 260 |
| MARBLE SLAB CREAMERY | $355K – $477K | $25K | 6.0% | 249 |
| BRUSTER'S | $415K – $1.1M | $40K | 5.0% | 219 |
Desserts & Ice Cream Average 28 franchises | $326K – $656K | $37K | 7.0% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 28 Desserts & Ice Cream franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
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Unlock location growth dataDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
MAGNOLIA BAKERY does disclose financial performance data (Item 19) in their 2025 FDD, including average and median gross revenue figures. Get full access to see the exact revenue numbers and detailed financial breakdown.
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