Kolache Factory franchise
2026 filing · August 6, 2026Shares sales figures
Kolache Factory at a glance
A bakery cafe selling kolaches and other baked goods and breakfast items. At the end of 2025 there were 61 Kolache Factory locations in the US, 28 franchised and 33 company-owned, so most are run by the company itself.
The business
- Franchisor
- KF Franchising, Ltd
- The company that sells the franchises
- First location
- 1982
What you pay
- Cost to open
- $642K–$937K
- A single store
- Franchise fee
- $44,900
- Paid once, when you sign
- Royalty
- 6%
- 6% of gross sales, paid weekly, plus 3% to the advertising fund
- Brand fund
- 3%
- 3% of gross sales
- Agreement length
- 10 years
- Franchisor financing
- None offered
Where it is
- US locations, 2025
- 61
- Franchised and company-owned
- Franchised
- 28
- Company-owned
- 33
- States
- 8
- Most in Texas, Indiana and California
From KF Franchising, Ltd’s 2026 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Kolache Factory among all franchises with the same figure.
| Figure | Kolache Factory | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $789,650 | Costs more than 78% of franchises |
| Franchise feePaid once, when you sign | $44,900 | Higher than 55% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 61 | More than 68% of franchises |
| Sales per locationYearly, as the brand reports it | $1,002,602 | Higher than 63% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 1.3× | Lower than 64% of brands that share sales figures |
How much a Kolache Factory franchise costs
Opening a single store costs an estimated $641,900 to $937,400. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements, construction ($270,000 to $360,000) and equipment, furniture & POS system ($175,000 to $198,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $44,900 | ||
| Real Estate Acquisition and/or Lease Costs | $45,000 | $120,000 | |
| Rent, Security and Utility Deposits | $7,000 | $20,000 | |
| Architectural, Engineering, Permitting and Legal Fees (including management services fee) | $18,000 | $22,500 | |
| Leasehold Improvements, Construction | $270,000 | $360,000 | |
| Cabinetry & Millwork | $28,000 | $35,000 | |
| Equipment, Furniture & POS System | $175,000 | $198,000 | |
| Initial Marketing Expenses | $3,000 | $5,000 | |
| Grand Opening Expense | $3,000 | $10,000 | |
| Signage | $5,000 | $15,000 | |
| Manager and Personnel Training | $3,000 | $22,000 | |
| Initial Inventory (Food & Paper Goods) | $10,000 | $20,000 | |
| Office Supplies, Uniforms, Freight, Miscellaneous Expenses & Gift Cards | $5,000 | $15,000 | |
| Additional Funds/Working Capital –3 months | $25,000 | $50,000 | |
| Total | $641,900 | $937,400 | |
Source: KF Franchising, Ltd, 2026 filing, page 12
Kolache Factory franchise fee
The franchise fee is $44,900. You pay it when you sign the franchise agreement.
Source: KF Franchising, Ltd, 2026 filing, page 8
Royalty and ongoing fees
| Royalty | 6% of gross sales, paid weekly, plus 3% to the advertising fund. |
|---|---|
| Brand or marketing fund | 3% of gross sales. |
| Transfer Fee | $6,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: KF Franchising, Ltd, 2026 filing, page 9
Other fees as filed, from page 10. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Kolache Factory publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average sales
- $1,002,602
Yearly figures for fiscal 2025, covering franchised stores open all of fiscal 2025 (26 locations). The filing gives an average for each third rather than one overall figure; this is the overall average worked out from those and each one's number of locations. The average is about 1.3 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: KF Franchising, Ltd, 2026 filing, pages 37–38
SBA loans to Kolache Factory franchisees
Lenders approved 33 SBA-backed loans for Kolache Factory franchisees from 2000 to 2026, $11.9M in all: 32 7(a) loans and 1 504 loan. Of the 25 that have ended, 22 were paid in full and 3 were charged off (12%). The other 8 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How Kolache Factory compares
Of the 58 breakfast franchises on this site, Kolache Factory is the 30th cheapest to open and the 16th largest by number of locations.
| Figure | Kolache Factory | Typical breakfast brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $642K | $640K | $222K |
| Cost to open, high end | $937K | $1.2M | $477K |
| Franchise fee | $45K | $40K | $40K |
| Royalty | 6% | 5% | 6% |
| Brand fund | 3% | 1.4% | 2% |
| Sales per location | $1M | $1.72M | $794K |
| US locations | 61 | 13 | 21 |
| Change in franchised locations, 0 yrs | −12.5% | +6.7% | – |
| Shares earnings figures | Yes | 46 of 58 | 2,147 of 3,352 |
Typical is the median across the 58 brands in breakfast franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned |
|---|---|---|
| 2023 | 30 (−2) | 30 |
| 2024 | 28 (−2) | 32 |
| 2025 | 28 (0) | 33 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: KF Franchising, Ltd, 2026 filing, page 44
Where Kolache Factory locations are
At the end of 2025, Kolache Factory had locations in 8 states. The most are in Texas, Indiana and California.
- Texas49
- Indiana3
- California2
- Kansas2
- Missouri1
- Nebraska1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Texas | 22 | 27 | 49 |
| Indiana | 1 | 2 | 3 |
| California | 2 | 0 | 2 |
| Kansas | 0 | 2 | 2 |
| Missouri | 1 | 0 | 1 |
| Nebraska | 1 | 0 | 1 |
| South Carolina | 0 | 1 | 1 |
| Virginia | 0 | 1 | 1 |
Source: KF Franchising, Ltd, 2026 filing, page 44
Who owns Kolache Factory?
Kolache Factory franchises are sold by KF Franchising, Ltd. Its filing names no parent company.
From KF Franchising, Ltd’s 2026 filing, page 6.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: KF Franchising, Ltd, 2026 filing, litigation on page 8, bankruptcy on page 8
Kolache Factory filings
The figures on this page come from KF Franchising, Ltd’s 2026 filing, issued August 6, 2026, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2026 filing | August 6, 2026 | NASAA depository | Costs, fees and locations, 2023–2025 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other breakfast franchises
All breakfast franchises
Kolache Factory is also on these lists: bakery franchises, food franchises.