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Somedays Bakery
How much does Somedays Bakery cost?
Initial Investment Range
$403,900 to $889,500
Franchise Fee
$35,000
The franchise that we offer is for Somedays, a bakery featuring freshly baked pastries, sandwiches, coffee, and other food and beverage menu items in a modern environment.
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Somedays Bakery April 30, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 22, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
Somedays Bakery Franchising LLC (Somedays) is a new entity with a limited financial history, as explicitly noted in the 'Special Risks' section. The financial statements in Item 21 show the company was recently formed, has incurred net losses, and has very limited equity. This raises questions about its financial capacity to support franchisees effectively, especially during initial growth phases, and could make it heavily reliant on new franchise fees for cash flow.
Potential Mitigations
- A franchise accountant should thoroughly analyze the franchisor's balance sheet, income statement, and statement of cash flows, including all footnotes.
- It is vital to ask the franchisor about its capitalization and funding sources for supporting the system's growth.
- Your attorney can help assess whether the financial condition necessitates a performance bond or escrow of your initial fees, if required by state law.
High Franchisee Turnover
Low Risk
Explanation
This risk was not identified as Somedays is a new franchisor with no operating franchised outlets, according to Item 20. Therefore, there is no history of franchisee turnover. High turnover can be a significant red flag in established systems, often indicating problems with profitability, support, or the business model itself. You will be one of the first franchisees, which carries its own set of risks.
Potential Mitigations
- As one of the initial franchisees, it is crucial for your business advisor to help you assess the viability of the business model without historical franchisee data.
- Your attorney should help negotiate protective clauses in the agreement, considering you are an early-stage franchisee.
- Discuss the franchisor's long-term vision and support plans for its foundational franchisees with your business advisor.
Rapid System Growth
Low Risk
Explanation
This risk was not identified because Item 20 shows the franchisor is new and has no existing outlets, so there is no history of rapid growth. While not a current risk, if the franchisor begins to sell franchises very quickly, it could strain its ability to provide adequate support to all franchisees. You should monitor the pace of new franchise sales as you move forward.
Potential Mitigations
- Engaging a business advisor to discuss the franchisor's growth plans and their capacity to support new units is a prudent step.
- Your attorney can review the franchisor's contractual support obligations to understand what is guaranteed regardless of system size.
- In discussions with the franchisor, inquire about their staffing and infrastructure plans to manage future growth.
New/Unproven Franchise System
High Risk
Explanation
The FDD clearly states this is a new franchise system, established in June 2024 and beginning to offer franchises in August 2024. The 'Special Risks' section explicitly flags the 'Short Operating History.' As a result, the business model is unproven in a franchise context, brand recognition is minimal, and the franchisor's support systems are untested. This presents a higher level of risk compared to an established franchise system.
Potential Mitigations
- A thorough investigation of the management team's prior industry and franchising experience, as detailed in Item 2, is essential with your business advisor.
- Your accountant must perform a rigorous analysis of your own financial projections, as no historical franchisee performance data exists.
- Seeking more favorable terms, such as reduced royalties for an initial period, could be negotiated by your attorney to offset the higher risk.
Possible Fad Business
Medium Risk
Explanation
The business operates in the competitive bakery and coffee shop market. While this market is established, new concepts can sometimes be tied to short-lived trends. Given that Somedays is a new brand, its long-term consumer appeal and ability to differentiate itself from numerous competitors are not yet proven. There is a risk that the concept may not have sustained demand over the life of your 10-year franchise agreement.
Potential Mitigations
- Conducting your own local market research with a business advisor to gauge long-term demand for this specific type of bakery concept is critical.
- You should ask the franchisor about their long-term plans for menu innovation, brand development, and adapting to changing consumer tastes.
- Analyzing the business model's resilience to economic shifts and evolving food trends with your financial advisor is recommended.
Inexperienced Management
Medium Risk
Explanation
The management team disclosed in Item 2 has prior experience in the bakery and food service industry, notably with an affiliate, Chip City Cookies. However, their experience in founding and managing this specific 'Somedays' franchise system is, by definition, very limited as the company was only recently formed. Successfully operating a business is different from successfully running a franchise system that supports independent owners.
Potential Mitigations
- A deep dive into the specific roles and franchising-related accomplishments of the executives listed in Item 2 should be conducted with your business advisor.
- You should directly question the management team about their franchise support philosophy and the systems they have built.
- Your attorney can help you understand the importance of experienced leadership in a new franchise system.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD. The franchisor does not appear to be owned or controlled by a private equity firm. This type of ownership can sometimes lead to a focus on short-term profits and a quick sale of the company, which may not align with the long-term interests of franchisees. Since this is not present, it is not a direct concern for this franchise.
Potential Mitigations
- Understanding the franchisor's ownership structure and long-term goals is always a valuable discussion to have with your business advisor.
- Your attorney can confirm the ownership structure through a review of corporate documents.
- It is good practice to ask about any potential plans for future sale or acquisition of the company.
Non-Disclosure of Parent Company
Medium Risk
Explanation
The FDD discloses a parent company, Somedays Bakery Corp. However, the parent company's financial statements are not included in Item 21, and there is no mention of a parent guarantee for the franchisor's obligations. Given that the franchisor entity itself is new and has limited financial resources, the financial strength of the parent is a material fact, and its absence makes it difficult to fully assess the overall stability of the enterprise supporting your franchise.
Potential Mitigations
- Your attorney should inquire why the parent company's financials are not included and whether they will provide a performance guarantee.
- A discussion with your accountant is needed to evaluate the risk of a thinly capitalized subsidiary without a formal financial backstop.
- You should ask the franchisor directly about the relationship between the parent and franchisor and the level of financial support provided.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified. According to Item 1, the franchisor has no predecessors from which it acquired the business. This means the system's history begins with the current franchisor, simplifying due diligence in this area. In other cases, a predecessor's history of litigation, bankruptcy, or high franchisee turnover could be a significant inherited risk for a new owner.
Potential Mitigations
- Confirming the lack of predecessors with your attorney is a simple due diligence step.
- A business advisor can help you understand that while there are no predecessors, this also means there is no long-term history to analyze.
- It is always a good idea to perform a general background check on the franchisor entity itself.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified, as Item 3 of the FDD reports no material litigation involving the franchisor, its predecessors, or its management. The absence of litigation is a positive sign, particularly regarding claims of fraud or breach of contract. However, as a new franchisor with no operating franchisees, there has been limited opportunity for disputes to arise.
Potential Mitigations
- It's good practice to have your attorney perform an independent search for litigation, as the FDD only requires disclosure of 'material' actions.
- Continue to monitor for any litigation that may arise as the system begins to grow.
- Discussing the franchisor's dispute resolution philosophy with your business advisor can provide useful insight.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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