Business Description

Production and sale of traditional and ethnic breads using proprietary ovens and equipment, complete for emulation, production and sales instruction.

Franchisor Background

Year Established:  1995

Franchising Since:  1997

Operating Units:
Franchised Units:	3	75%
Company-Owned Units:	1	25%
Total Operating Units:	4	100.0%
Geographic Distribution: U.S.: 4 100% In 1 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 4 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. Michigan	4

Registered in Following Registration States:

Financial Requirements

Investment:
Minimum Net Worth:	$
Cash Investment:	$25K
Total Investment:	$200K
Average Total Investment:	$175K
Fees:
Initial Franchise Fee:	$20K (Incl.)
Average Franchise Fee:	$20K
On-Going Royalty:	4%
Average Royalty:	4%
Advertising Fee:	2%

Average Number of Employees: 4 Full-time, 3 Part-time

Space Needs (in square footage): 1,500

Preferred Sites: Storefront, Strip Center, Regional Mall

Other Sites:

Encourage Conversions? No

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	N/A
General Business Experience:	N/A
Specific Industry Experience:	N/A
Formal Education:	N/A
Psychological Profile:	N/A
Personal Interview(s):	N/A
Terms of Contract
Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	Year(s)
Passive Ownership:	Allowed, But Discouraged
Area Development Agreements?	Yes, for 1 Year(s)
Sub-Franchising Contracts?	Yes
Franchisees Allowed to Expand Within Territory?	No
Support and Training
International Franchise Association:	No
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	2
Site Selection Assistance?	No
Lease Negotiation Assistance?	Yes
Financial Assistance?	No
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	Not Applicable
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Not Applicable
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Not Applicable
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Included in Fees
800 Telephone Hotline:	Not Applicable
Training:
1. Brooklyn, MI	30 Days
2. Franchise Outlet	30 Days
Expansion Plans
Projected New Units Over Next 12 months: U.S.: Yes, All United States Canada: No Overseas: No	Request Franchisor Info   Submit an online form to receive information from Stone Hearth Breads U. S. A..