Risk Score
Pending analysis
Investment Range
$91,730 - $454,000
Franchise Fee
$26,400
Total US Locations
60
Business Summary
LE MACARON FRENCH PASTRIES operates various types of pastry shops, including traditional shops, permanent kiosks, mobile kiosks, and food trucks. These locations specialize in a range of signature macarons and other French pastries like croissants, madeleines, and éclairs. They also offer chocolates, gelato, coffee, and other non-alcoholic, and in some cases alcoholic, beverages. LE MACARON FRENCH PASTRIES businesses also provide catering and delivery services.
Corporate History
Le Macaron Development LLC was formed on June 15, 2010, as a Florida limited liability company. The LE MACARON FRENCH PASTRIES concept itself began with an affiliate, Le Macaron LLC, which was formed on September 21, 2009, and opened the original LE MACARON FRENCH PASTRIES shop in August 2009. Le Macaron Development LLC started offering LE MACARON FRENCH PASTRIES franchises in August 2012.
Financial Overview
Investment Range
$91,730 - $454,000
Franchise Fee (Low)
$26,400
Franchise Fee (High)
$45,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$30,000
Equipment Costs (High)
$95,000
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
While LE MACARON FRENCH PASTRIES' financial statements show positive net income and cash flows from operations, which led management to conclude there is no significant doubt about the company's ability to continue as a going concern, the franchisor's FDD itself highlights a special risk. Item 1 states that the franchisor's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. Additionally, the audited balance sheet as of December 31, 2023, shows a Member's deficit of $(204,028), indicating accumulated losses. This presents a mixed picture of the company's financial health.
Financing Details
LE MACARON FRENCH PASTRIES does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other obligations that franchisees may incur.
Performance Metrics
Total US Locations
60
Franchised Units
55
Corporate Units
5
Avg Square Footage
900
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
LE MACARON FRENCH PASTRIES has one reported litigation case. In 2017, Le Macaron Development, LLC and its affiliate Le Macaron Confectionary, LLC sued a terminated franchisee for over $200,000 in loan funds and $96,160.50 in unpaid product purchases. The lawsuit alleged breach of contract, trademark infringement, unfair competition, and other claims. The terminated franchisee counterclaimed for fraud, breach of contract, and other violations. In August 2022, the court awarded Le Macaron Development, LLC $316,686.65 and Le Macaron Confectionary, LLC $130,189.57. A final judgment in February 2023 awarded an additional $172,345 to Le Macaron Development, LLC and dismissed all counterclaims. An appeal was granted on March 27, 2024, reversing the dismissal and remanding for further proceedings. Le Macaron Development, LLC plans to continue aggressively defending and pursuing the matter.
Bankruptcy History
LE MACARON FRENCH PASTRIES has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their LE MACARON FRENCH PASTRIES franchise, franchisees must provide timely notice of their intent to renew, typically between 12 and 24 months before the current term expires. They must be in good standing, meaning they have complied with all obligations under the franchise agreement and other agreements, and have satisfied all monetary obligations to the franchisor, its affiliates, and third-party suppliers. Franchisees must also secure the right to remain at their current premises or find an approved alternate location. The franchisor requires them to renovate or modernize their Pastry Shop to meet current brand standards. They must also comply with the then-current qualifications and training requirements, pay a Renewal Fee, and ensure each owner signs a general release. They will also need to sign the franchisor's then-current franchise agreement, which may have different terms.
Training & Support Program
Franchisor Assistance
LE MACARON FRENCH PASTRIES provides several forms of assistance to its franchisees. Before opening, the franchisor helps with site selection by accepting or refusing proposed locations, and provides an initial training program for two owners or management-level individuals, plus a one-day refresher course for the first Pastry Shop. Franchisees receive a loan copy of the operations Manuals and pre-opening consultation on design, layout, equipment, and inventory control. After opening, LE MACARON FRENCH PASTRIES offers ongoing consultation on new product development, brand updates, operational and management instruction, mystery shopper programs, customer feedback, as well as advertising, marketing, financial, and accounting guidance. They also communicate information about approved suppliers to franchisees.
Initial Training Hours
40
Training Location
Orlando, Florida
Ongoing Support
LE MACARON FRENCH PASTRIES offers ongoing consultation and advice, which can cover new product development, updates to trade dress, operational and management instruction, mystery shopper programs, customer feedback, as well as advertising, marketing, financial, and accounting guidance. The franchisor also provides updates on approved and designated suppliers. Additionally, LE MACARON FRENCH PASTRIES may require managing owners, key persons, and other managerial employees to attend further training courses, seminars, and programs.
Franchise Requirements
Ideal Candidate Profile
LE MACARON FRENCH PASTRIES seeks franchisees who will serve as a 'Managing Owner' for their Pastry Shop. This individual must have an equity interest in the franchise, successfully complete the initial training program, and dedicate full-time efforts to the day-to-day management and operation of the business. For franchisees operating multiple locations, an additional 'Key Person' is required. This Key Person does not need an equity interest but must complete initial training and also commit full-time to daily Pastry Shop operations and management, without engaging in other significant managerial activities.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
The LE MACARON FRENCH PASTRIES franchise territory is defined as a 'Protected Area' that is mutually agreed upon by the franchisor and franchisee, and will be identified in Attachment B of the Franchise Agreement. This Protected Area can be defined using zip codes, city or county lines, or other identifiable markers. However, it specifically excludes 'Captive Markets' within that area, such as department stores, shopping malls, airports, and other mass gathering events or locations, where the franchisor retains rights to operate or grant other franchises.
Staffing Notes
LE MACARON FRENCH PASTRIES requires franchisees to maintain a competent, conscientious, and trained staff that delivers excellent customer service. All employees must adhere to specific uniform and appearance standards set by the franchisor, and are prohibited from wearing their LE MACARON FRENCH PASTRIES uniform while working at any other location. The business must be generally supervised by a full-time Managing Owner, who holds an equity interest and completes initial training. For multi-unit operators, a full-time Key Person is also required to manage day-to-day operations and complete training, though they don't need an equity interest.