Review of the Kolache Factory Franchise Opp and Startup Costs

The smell of a warm, buttery pastry wafting through the air is a guaranteed moneymaker in every community. That’s what you’ll produce every morning when you own a Kolache Factory! Kolaches are a Czech and Slovak food that holds a drop or dollop of fruit in the center of a flaky pillow of pastry dough. They were originally a dessert that was served at weddings, but today are one of the fastest growing pastries in the US because they can be made in sweet and savory combinations.

How to Start a Blog

How popular are kolaches? From Cedar Rapids, IA, to Caldwell, TX there are festivals that celebrate this pastry. If you go to Montgomery, Minnesota, you’ll find yourself in the self-declared Kolache capital of the world! With a Kolache Factory, you’ll create the freshest, best kolaches that anyone has ever had. As an extra bonus, you’ll have access to out-of-state customers thanks to a national website. Are you ready to start baking today?

What Are the Initial Costs of This Franchise Opportunity?

As part of the initial application process, you must have a provable net worth of at least $500k. Of that, you must also be able to show liquid assets of at least $150k to qualify as a franchisee. If you do have the funds, your professional experiences will be closely examined. You don’t need to have bakery or restaurant experience, but any experiences you have within the industry will be looked upon favorably.

You’ll also be given an interview that will take a look at other aspects of your personality and work experience. Kolache Factory strives to bring in franchisees that have high levels of business experience and a reputation for strong leadership, management, and social skills. You must have a proven ability to manage finances and direct reports and be able to work directly with your new business opportunity as absentee ownership is not allowed.

If approved, you will be required to pay a lump-sum franchise fee of $35,000. This will give you a franchise term of 10 years. The combined total investment that is anticipated for the starting of a new location is a minimum of $340k. High end estimates could bring that total up to $474k and includes operating it for the first 3 months after your grand opening.

There is a 6% royalty that must be paid to the organization from gross sales and there is an advertising fee of 3% that also applies. You’ll also have market demographics in your location selection that must be met, including a 60,000 population minimum within a three mile radius and the average income of that location must be at least $60,000 per household. All locations must be a minimum of 1,540 square feet and must be built or remodeled to company specifications before being allowed to open.

What Kind of Support Is Available To New Franchisees?

Once approved for your new Kolache Factory franchise, you’ll be required to take two separate training courses, each two weeks long, that take place over a six week period at the organization’s Houston, TX training location. This will involve both the franchisee and the store manager and includes everything from personnel management to the required internal accounting systems that track sales through the POS system that will be installed.

This training process, called Kolache University, will get you and your manager hands-on in the creation of kolaches and take you through the entire process, from baking to sanitation and quality control.

You’ll also receive ongoing support in a number of different ways, starting from the initial site selection for your new franchise. Training assistance, sourcing equipment for your store, marketing, and operations management help is also available based on the needs of the franchisee. Kolache Factory will help to find a real estate broker to provide another level of support and once the location is found, you’ll receive a sample set of plans and specifications that must be met. You’ll get a full list of furniture, equipment, fixtures, and signs to install as well.

The final area of support that you’ll receive is through passionate promoting. Kolache Factory has been growing their brand for over 25 years and if you just put the term “kolaches” into Google, the top result is the website of this organization. You’ll receive creative and effective marketing materials that will help you build brand awareness throughout your community and you’ll get aid in developing partnerships and campaigns that are locally based.

Is the Kolache Factory the Right Investment To Make?

The one issue that faces the Kolache Factory is the fact that the product being made is an extreme niche product. If you have an extensive Czech, Slovak, or Central European population in your local community that can meet the population standards for the franchise, you’re much more likely to experience success. This niche is so tight that only 42 stores currently exist in the United States and half of them are company owned despite over a decade of franchising.

The other issue that faces this organization is the fact that some of the products that they make aren’t actually the traditional kolcahe and that can turn off a lot of customers who would come to your store looking for a traditional pastry. The meat and cheese pastries in particular aren’t actually kolaches, but more reminiscent of English pies that you’d find at a quick service shop.

To your advantage, however, your products in your new franchise will taste different, look different, and be ready to eat throughout the day. They’re easy to eat while on the go, are fully self-contained, and really fun to eat. If you’ve got experience baking or have a talent for being in the kitchen, then this fast food opportunity could be right for you. Be sure to check your local population demographics before applying and make sure you can meet the credit and financial stipulations. If you do, then apply today, get an interview scheduled, and start making kolaches this year!