Risk Score
Pending analysis
Investment Range
$1,266,805 - $4,651,324
Franchise Fee
$30,000
Min Cash Required
$100,000
Total US Locations
2,206
Business Summary
Panera, LLC operates and franchises Panera Bread Bakery-Cafes, which specialize in selling high-quality food like fresh baked goods, sandwiches, soups, salads, and coffee in a warm and comfortable setting. These Bakery-Cafes come in two main formats: 'Core' and 'Small Box', offering dine-in, carry-out, catering, and delivery services. Panera, LLC aims to provide a special dining experience that stands out from typical fast-food restaurants.
Corporate History
Panera, LLC was originally formed as ABP Acquisition Corp. in November 1993. It then changed its name to 'Saint Louis Bread Company, Inc.' in December 1993 and later to 'Panera, Inc.' in July 1999. In December 2001, Panera, Inc. converted to Panera, LLC. Panera, LLC has been franchising and operating company-owned Panera Bread Bakery-Cafes since December 1993. Although most locations now operate under the 'Panera Bread' name, company-owned Bakery-Cafes in the St. Louis, Missouri area continue to use the 'Saint Louis Bread Company' name due to its local recognition.
Financial Overview
Investment Range
$1,266,805 - $4,651,324
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$100,000
Royalty %
5%
Marketing %
5.9%
Equipment Costs (Low)
$461,346
Equipment Costs (High)
$835,117
Working Capital
$209,195
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Panera Brands, Inc., the parent company of Panera, LLC, serves as the guarantor for the franchise. In 2024, Panera Brands recorded a significant goodwill impairment of $158.5 million related to its fresh dough and other product operations, which was attributed to a reduced profit forecast from an ongoing bakery and supply chain transformation. This goodwill impairment was highlighted by auditors as a critical audit matter due to the subjective judgments involved in its calculation. Despite this, Panera Brands was in compliance with its credit facility covenants as of December 31, 2024. The company anticipates incurring additional expenses of $35 million to $50 million through fiscal year 2026 as it completes its bakery transformation initiative. Panera Brands also has a future obligation to redeem vested warrants by January 2026, with their fair value reflected in its liabilities.
Financing Details
Panera, LLC does not offer any direct or indirect financing to its franchisees. Additionally, Panera, LLC does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
2,206
Franchised Units
1,105
Corporate Units
1,101
Avg Square Footage
2,975
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Panera, LLC had one disclosed legal matter, a settlement agreement reached in March 2019 with several states. These states alleged that Panera Bread's employee non-solicitation clauses in its franchise agreements violated antitrust, consumer protection, and employment laws. While Panera, LLC denied violating any laws, it agreed to stop using and enforcing these provisions and to update its franchise agreements to remove them. As of the FDD's issuance date in April 2025, Panera, LLC was not aware of any new filings related to this settlement, and no other litigation is required to be disclosed.
Bankruptcy History
Panera, LLC has no bankruptcy history to report for itself or its executive officers.
Agreement Terms
Initial Term
20 years
Renewal Term
2 years
Renewal Conditions
To renew their franchise agreement, Panera, LLC franchisees must provide 180 days advance written notice of their intent to renew. They must be in full compliance with all existing agreements, pay a renewal fee equal to 50% of Panera, LLC's then-current initial franchise fee, and remodel their Bakery-Cafe to meet the franchisor's current site criteria and specifications. Franchisees are also required to sign a general release and a new franchise agreement, which may contain terms and conditions that are materially different from their original contract. Renewal is further contingent upon no adverse franchise legislation being in effect.
Training & Support Program
Franchisor Assistance
Panera, LLC offers comprehensive assistance to its franchisees, starting with pre-opening support including general guidance for site selection and providing operational concept plans and specifications for the Bakery-Cafe. The franchisor also conducts mandatory training programs for the Operating Partner and key personnel, grants access to the Policy Manual, and provides on-site opening operational assistance for the first Bakery-Cafe. Operating Partners and marketing directors are required to attend orientation meetings. Ongoing support involves periodic guidance on System improvements, modifications to the Policy Manual, and issuing updated operating procedures and specifications. Panera, LLC facilitates the supply of food products through approved distributors and suppliers, administers national and local advertising funds, and provides continuous training programs for the Operating Partner and other staff. The franchisor may also guide franchisees in establishing their own certified training programs and offers retail pricing advice. Franchisees are also required to participate in various quality control and test marketing programs.
Initial Training Hours
816
Training Location
Certified Panera Bread training Bakery-Cafe, either in the franchisee's market or a neighboring market. Some courses like GM Basics may be online.
Ongoing Support
Panera, LLC provides continuous support to its franchisees after opening. This includes regular guidance on updates to the Panera Bread System and modifications to the Policy Manual, which contains mandatory operating procedures and standards. The franchisor issues specifications and standards for Bakery-Cafes and manages advertising funds, including the National Advertising Fund (NAF), Local Advertising Funds (LAF), and a Marketing Administration Fee (MAF). Panera, LLC offers periodic and ongoing training programs for the Operating Partner and other staff, and may provide guidance for franchisees to set up their own certified training programs. It also offers advice on retail pricing and conducts market research programs, requiring franchisees to participate in test marketing new products. Additionally, franchisees participate in quality control initiatives such as 'secret shopper' and customer satisfaction measurement programs.
Franchise Requirements
Ideal Candidate Profile
Panera, LLC seeks qualified individuals or entities to develop multiple Panera Bread Bakery-Cafes. Ideal candidates should possess strong business abilities, significant financial resources, and a commitment to full-time, hands-on involvement in the development and operation of their Bakery-Cafes. Franchisees and their Operating Partners must be able to demonstrate sufficient financial and management capabilities. The Operating Partner must hold at least a 10% equity interest in the franchise and dedicate their full-time efforts to the business, avoiding other substantial management responsibilities that could conflict with their obligations. Panera, LLC looks for individuals dedicated to delivering a high-quality quick-casual dining experience.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
Panera, LLC typically defines a 'Protected Area' for each Panera Bread Bakery-Cafe as a one-mile radius from the center of the location. This radius can be adjusted based on the specific type of geographic area. For 'Urban Residential areas' with a residential population exceeding 50,000 within a two-mile radius, the Protected Area may be reduced to a 0.25-mile radius. In 'City Center areas' with a daytime population greater than 20,000 within a 0.25-mile radius, the Protected Area may be reduced to a 0.2-mile radius, and further to a 0.1-mile radius if the daytime population exceeds 40,000 within a 0.25-mile radius.
Staffing Notes
Panera, LLC requires each Panera Bread Bakery-Cafe to be consistently managed by an Operating Partner or a certified on-site general or assistant manager or shift supervisor. The Operating Partner is expected to dedicate full-time efforts to the business. The essential in-store baking process is handled by trained retail team members under the general manager's oversight. Each Bakery-Cafe must maintain adequate staffing levels, including at least one trained general manager, assistant managers, shift supervisors, bakers, and hourly associates to ensure all shifts are covered by at least one assistant manager or shift supervisor. Panera, LLC may modify its organizational structure for baking and overall staffing, which franchisees must implement. Franchisees bear sole responsibility for all employment decisions, including hiring, firing, compensation, training, supervision, and discipline of their personnel.