If you are looking towards opening a Mr Puffs Franchise in Canada, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.

The current CEO and founder of the company is Billy Siounis and they have their corporate head office at 4492, Autoroute Laval (A-440) Ouest Laval, Quebec H7T 2P7. Mr. Puffs Pastry Inc. is a Montreal based company created in 2004 by its founder/owner Billy Siounis. It’s the first of its kind in North America proudly serving Hot & Fresh Puffs (loukoumades).

Mr. Puffs was first served commercially by founder Billy Siounis at local ethnic events in the greater Montreal region, in the summer of 2004, which coincided with the summer Olympiads in Athens Greece. He was the first to add delicious all natural glazes and toppings to the traditional ‘loukoumada’.

The pastries were an instant success due in part to the fresh ingredients, all natural glazes and the custom built cooker which cooks the puffs in front of the customer. Patrons have been eagerly awaiting a permanent location ever since. Please note that your initial investment to acquire a license for a Mr. Puffs is $25,000.

With this investment, you will receive the initial training, support, development assistance and operating manuals necessary to start up the Café. Your total investment will vary depending on many factors such as size and location of the Café, but an estimated cost of the project should be in the range of $250 000 to $350 000. Here are areas where you are expected to spend money and the cost associated with it;

Financial Investment Required to Open Mr Puffs Franchise

1. Initial Investment Range: $250 000 to $350 000

2. Franchise Fee: $25,000

3. Royalty Fee

The current Royalty fee is 5 percent of gross sales which provides you with the ability to use The Mr. Puffs brand as well as training, support and continuous R&D. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.

Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.

  1. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution

The current Marketing fee is 2 percent which provides you with brand recognition and growth. A 1 percent of gross sales is required by every franchisee to be spent on local advertisement i.e., local newspaper and the Due Date: for this is Monthly.

Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.

Centers owned by Mr Puffs and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.

  1. Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
  2. Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
  3. Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.

Please note that you must reimburse Mr Puffs if it is held liable for claims arising out of your franchise operations.

  1. Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
  2. Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)

Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.

  1. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
  2. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)

Payable to Mr Puffs if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Mr Puffs is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: This is open for negotiation with the company
  2. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  3. Financial Assistance: Mr Puffs has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.

In Summary,

  • Initial Investment: $250 000 to $350 000
  • Ongoing Initial Franchise Fee: $25,000
  • Ongoing Royalty Fee: 5%
  • Ad Royalty Fee/Marketing Fee: 2%