Risk Score
Pending analysis
Investment Range
$448,250 - $2,529,160
Franchise Fee
$20,000
Total US Locations
89
Business Summary
La Madeleine Franchising Company, Inc. offers franchises for Bakery Café and Express Café restaurants, collectively known as la Madeleine Cafés. These establishments specialize in selling fresh bakery goods, French-themed entrées, sandwiches, soups, salads, pastries, gourmet coffees, wine, and privately-labeled retail items like soups, salad dressings, and gourmet coffees.
Corporate History
La Madeleine Franchising Company, Inc. was incorporated in Delaware on September 19, 2011, and operates under the LA MADELEINE® name. It is a subsidiary of Le Duff America, Inc. (LDA), which is owned by LDA Holding Company, Inc., and ultimately by Le Duff, Restauration, a French company that also owns several other restaurant and retail bakery concepts globally, including Brioche Dorée, Le Fournil de Pierre, Del Arte, Michel's Bakery Café, and Au Pain Doré. La Madeleine Franchising Company, Inc. began offering LA MADELEINE® franchises in October 2011.
Financial Overview
Investment Range
$448,250 - $2,529,160
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
4%
Equipment Costs (Low)
$221,500
Equipment Costs (High)
$514,800
Working Capital
$77,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Le Duff America, Inc. has audited financial statements that received an unqualified opinion from its independent certified public accountants, indicating the financial statements present fairly in all material respects. Le Duff America, Inc. also absolutely and unconditionally guarantees the performance of La Madeleine Franchising Company, Inc.'s obligations to franchisees under the Franchise and Development Agreements, providing a layer of financial assurance.
Financing Details
La Madeleine Franchising Company, Inc. does not offer direct or indirect financing to its franchisees. Additionally, it will not guarantee a franchisee's promissory note, lease, or any other financial obligation.
Performance Metrics
Total US Locations
89
Franchised Units
60
Corporate Units
29
Avg Square Footage
2,300
Franchising Since
2011
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
La Madeleine Franchising Company, Inc. has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
La Madeleine Franchising Company, Inc. has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, La Madeleine franchisees must provide written notice between six and nine months before the initial term ends. They must be in good standing, without any defaults, and have consistently met their financial obligations. Franchisees are required to complete all modifications to products, services, advertising, and financial systems, as well as renovate and modernize their café to meet current brand standards. They must also sign La Madeleine Franchising Company, Inc.'s then-current Franchise Agreement and a general release, and pay a successor franchise fee equal to half of the current initial franchise fee for a new café. They must also meet current qualification and training requirements.
Training & Support Program
Franchisor Assistance
La Madeleine Franchising Company, Inc. assists franchisees with pre-opening obligations by providing site selection guidelines and criteria, reviewing proposed sites, and offering on-site evaluations if deemed advisable. The franchisor furnishes prototypical plans for café construction and layout, and reviews preliminary and final architectural drawings. Franchisees receive access to the confidential operations manuals and mandatory management training. For their first two cafés, franchisees also receive on-site opening assistance. After opening, ongoing support includes administering the Brand Marketing Fund, making advertising and promotional materials available for purchase, and providing advice and written materials on café management. La Madeleine Franchising Company, Inc. also offers to review proposed suppliers and defends franchisees against trademark infringement claims related to their proper use of the brand's marks.
Initial Training Hours
300
Training Location
Certified Training Café in the Dallas/Fort Worth Metroplex and/or their Corporate Office in DFW
Ongoing Support
La Madeleine Franchising Company, Inc. provides ongoing support to its franchisees after a café opens. This includes administering the Brand Marketing Fund and making various advertising and promotional materials available. Franchisees receive advice and written materials on managing and operating the café, and the franchisor will review any proposed suppliers upon request. La Madeleine Franchising Company, Inc. also defends franchisees against trademark infringement claims if the marks are used properly. Additionally, franchisees must use a secure Learning Management System for training, reference materials, and communications. LDAMC provides technology support services for the Technology Suite, including data content administration and help desk services, for which a monthly administrative fee applies. Franchisees may be required to attend additional training programs periodically, as well as annual or bi-annual leadership conferences and quarterly meetings. The franchisor also conducts quality assurance audits and may require additional training if performance standards are not met.
Franchise Requirements
Ideal Candidate Profile
La Madeleine Franchising Company, Inc. seeks individuals and business entities that meet specific qualifications and are prepared for the investment and effort needed to operate and grow a LA MADELEINE® business. The franchisor particularly looks for existing successful multi-unit foodservice operators. Candidates for the Lead Operator role, who must personally participate daily and oversee café operations, are required to have at least three years of multi-restaurant management experience and must complete the franchisor's management training.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
3
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Under the Franchise Agreement, La Madeleine typically defines the protected territory as a three-mile radius from the front door of the café, though this area may be smaller in urban locations. For Development Agreements, the Development Area is negotiated based on factors such as natural and political boundaries, population density, advertising markets, and the proximity of other La Madeleine Cafés or development areas.
Staffing Notes
La Madeleine Cafés require a minimum of three individuals who have successfully completed the management training program to be on staff. One of these must be a general manager who is on-site most working days. Additionally, at least one general manager or supervisor must always be on duty during the café's operating hours. The franchisor expects franchisees to maintain a competent, well-trained staff sufficient to operate the café in line with their standards, focusing on good customer relations and knowledgeable service. If training does not meet standards, additional training for employees may be required, either on-site or at a certified training café, at the franchisee's expense.