How Much Does 85 Degrees Bakery Franchise Cost?

Updated on August 9, 2026 | Written by Alec Pow
This article was researched using 7 sources. See our methodology and corrections policy.

An 85°C Bakery Cafe franchise currently costs an estimated $819,130 to $1,771,780 to open in the United States, according to data from the March 13, 2026 Franchise Disclosure Document. The initial franchise fee is $50,000, but construction and equipment are the expenses that push the total investment toward or above $1 million.

The midpoint of the current disclosed investment range is ($819,130 + $1,771,780) ÷ 2 = $1,295,455. In practical terms, someone evaluating a new 85°C bakery-cafe should think of this as roughly a $1.3 million project at the midpoint, not a $300,000 or $400,000 small bakery startup.

After opening, current FDD-derived figures show a 6.5% royalty and 1% marketing contribution on gross sales, plus approximately $1,300 per month for required software subscription and IT support. One thing 85°C does not currently disclose is equally important: the 2026 FDD does not provide an Item 19 financial performance representation showing average franchise-store sales or profits.

Article Highlights

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• Total 2026 initial investment: $819,130 to $1,771,780 (at $30 per hour, earning that amount would take about 13.1 to 28 years of full-time work, before taxes).
• Midpoint startup investment: approximately $1.30 million.
• Initial franchise fee: $50,000.
• Ongoing royalty: 6.5% of gross sales.
• Marketing contribution: 1% of gross sales.
• Software and IT support: approximately $1,300 per month, or $15,600 per year.
• The 2026 FDD does not publish an Item 19 average franchise revenue or profit figure.

How Much Does an 85°C Bakery Cafe Franchise Cost?

The current investment range comes from 85°C Bakery Cafe’s 2026 FDD, issued March 13, 2026. Free FDD Library confirms a total initial investment of $819,130 to $1,771,780 (about 13.1 to 28 years of full-time work at $30 per hour), while a detailed 2026 FDD analysis from FranchiseVerdict breaks that total into construction, equipment, inventory, training, permits, technology, working capital, and other startup expenses.

Startup expense	2026 estimated cost
Initial franchise fee	$50,000
Licenses, permits, fees and deposits	$5,000 to $35,000
Advance rent, security deposit and prepaid real estate costs	$9,000 to $50,000
Building and leasehold improvements	$391,000 to $902,000
Equipment and fixtures	$185,000 to $350,000
Signs	$13,000 to $25,000
POS system and software	$16,000 to $29,000
Opening inventory	$50,000 to $100,000
Training-related expenses	$30,000 to $90,000
Additional funds for first three months	$45,000 to $100,000
Total initial investment	$819,130 to $1,771,780

The current 2026 FDD listing independently reports the same $819,130 to $1,771,780 overall investment range.

Construction Is the Biggest Expense

Building the bakery is the largest single startup category. Current FDD figures put building costs and leasehold improvements at approximately $391,000 to $902,000 (about 6.3 to 14.5 years of full-time work at $30 per hour).

That makes sense for the concept. An 85°C is not simply a coffee counter with pastries delivered from an outside commissary. The company’s official description says its stores feature an in-shop bakery with more than 50 varieties of pastries baked fresh throughout the day. The location needs substantial bakery production equipment in addition to a customer-facing cafe.

Equipment and fixtures add another $185,000 to $350,000. Combined with construction, those two categories alone equal approximately:

$576,000 at the low end

and

$1,252,000 at the high end.

That means the physical store can consume around 70% or more of the minimum project budget before opening inventory, permits, training, professional fees, working capital, or the franchise fee are considered.

A recent real-world construction filing reinforces the size of the build. A second San Antonio-area 85°C location occupying approximately 4,030 square feet was associated with an estimated $1.2 million construction project before opening in 2026. That project is not a franchise-wide cost benchmark, but it demonstrates what a modern bakery-cafe build can look like in an actual market.

Royalty and Marketing Fees

After opening, the biggest recurring franchisor charge is the royalty. Current FDD-derived figures put it at 6.5% of gross sales.

The required marketing contribution is another 1% of gross sales.

Together, those percentage-based charges equal:

6.5% + 1% = 7.5% of gross sales.

Hypothetical annual sales	6.5% royalty	1% marketing	Combined percentage fees
$750,000	$48,750	$7,500	$56,250
$1 million	$65,000	$10,000	$75,000
$1.5 million	$97,500	$15,000	$112,500
$2 million	$130,000	$20,000	$150,000

These are calculations, not 85°C sales forecasts. The 2026 FDD does not disclose an average franchise-unit revenue figure, so the example sales levels above are used only to show how percentage fees behave.

The Hidden $15,600 Technology Cost

Percentage royalties are not the only continuing corporate expense. The current FDD identifies a software subscription and IT support fee of approximately $1,300 per month, covering the required point-of-sale software subscription and technology support.

Over one year:

$1,300 × 12 = $15,600.

Now apply that to the hypothetical $1 million sales example:

• 6.5% royalty: $65,000
• 1% marketing contribution: $10,000
• software and IT: $15,600
• total of these three charges: $90,600 per year

That equals about 9.06% of hypothetical $1 million sales before rent, wages, payroll taxes, ingredients, packaging, utilities, repairs, insurance, card-processing costs, debt service, taxes, and other operating expenses.

How Much Does an 85°C Franchise Make?

There is currently no official average franchise-store revenue or profit figure that should be presented as an 85°C earnings expectation.

The 2026 FDD does not make an Item 19 financial performance representation. Current FDD analysis identifies Item 19 as having no disclosed unit-level financial performance data.

That means figures claiming the average franchise makes $800,000, $900,000, $1.2 million, or earns a fixed 13.5% profit margin should not be treated as current franchisor disclosures.

For someone considering an investment approaching $1.8 million, this is a meaningful due-diligence issue. The FDD’s Item 20 contains current and former franchisee contacts. Prospective owners can ask operating franchisees about actual sales, labor percentages, food costs, rent, opening delays, construction overruns, and cash flow rather than relying on an unsourced online profit projection.

85°C Is Mostly Company-Owned

The U.S. franchise system is still small relative to the company’s corporate-store network.

Data extracted from Item 20 of the 2026 FDD shows 88 U.S. units at the end of 2025, consisting of approximately 82 company-owned stores and 6 franchised stores. The current FDD unit analysis also shows that three additional franchised units opened during 2025.

That means roughly 93% of the reported U.S. system was company-owned at year-end:

82 ÷ 88 × 100 = about 93.2%.

This is worth understanding before applying. 85°C is not currently a U.S. system containing hundreds of independently operated franchise stores. The official 85°C franchise page says only a limited number of opportunities are being offered and identifies multi-unit restaurant management or comparable experience as desirable for prospective franchisees.

No Franchisor Financing

Current FDD analysis indicates that 85°C does not offer franchisor financing. An owner therefore needs to arrange financing independently or fund the project with personal capital, business partners, investors, commercial lending, or another outside source.

The company does ask applicants to state their liquid capital on its official franchise application, but the public application does not provide one universal minimum liquid-capital number.

That distinction is important. An estimated $45,000 to $100,000 of additional funds listed in the startup-cost table represents expected money available for the first three months of operation. It should not automatically be interpreted as the total cash an investor needs to qualify for a project whose full cost can exceed $1.7 million.

Three 85°C Franchise Investment Scenarios

Lower-cost build: A franchisee lands near the bottom of the disclosed range at $819,130. Even this lower-end project requires nearly $820,000 before considering any financing interest or costs that fall outside the FDD assumptions.

Midpoint project: The midpoint between the current high and low estimates is $1,295,455. If the investor contributes 30% of that amount in equity, the cash contribution alone would be about $388,637, while the remaining approximately $906,819 would need another funding source. This is only a financing illustration, not an 85°C lending requirement.

High-cost build: A complex location reaching the current maximum estimate costs $1,771,780. Compared with the low end, that is another $952,650. Most of the spread comes from categories such as construction, leasehold improvements, equipment, training expenses, inventory, and local startup costs.

Training and Site Approval

85°C requires substantial operating training. Current 2026 FDD data identifies approximately 6 hours of classroom instruction and 234 hours of on-the-job training, for around 240 total hours.

At 40 hours per week:

240 ÷ 40 = 6 weeks of full-time-equivalent training.

Training takes place through online instruction and at a California 85°C Bakery Cafe selected by the franchisor.

The location process also requires more owner involvement than saying 85°C simply finds a store for the franchisee. Current FDD information says the franchisee selects the site and the franchisor approves it. Site-selection assistance is available, but lease-negotiation assistance is not listed as part of the support package.

Those distinctions matter because lease economics can decide whether an otherwise successful food business produces attractive owner returns.

85°C Is Still Expanding

The investment is high, but it buys access to a much larger global brand than older 85°C franchise descriptions suggest.

The company’s current history and brand page says 85°C has more than 1,000 locations worldwide. Founder Cheng-Hsueh Wu developed the concept in 2003, and the first U.S. store opened in Irvine, California, in 2008.

Growth in the United States has recently accelerated. Gourmet Master Co.’s latest annual report says U.S. sales recorded double-digit growth for five consecutive years and more than doubled over that period. Management said it was targeting more than 100 U.S. stores during 2026, according to the company’s 2025 annual report.

The expansion is visible geographically as well. In July 2026, 85°C confirmed its first Colorado location, with an Aurora opening planned for later in the year. That followed expansion into several newer U.S. markets.

85°C vs Paris Baguette

One useful comparison is Paris Baguette because both businesses combine on-site baking, cakes, pastries, coffee, and cafe service.

Franchise	Initial investment	Initial franchise fee	Published unit sales?
85°C Bakery Cafe	$819,130 to $1,771,780	$50,000	No current Item 19 unit-sales disclosure
Paris Baguette	$727,440 to $1,825,100	$50,000	Yes, current franchise site cites $2,861,550 2024 average unit sales

Paris Baguette’s current franchise investment page gives an initial investment of $727,440 to $1,825,100 and a $50,000 franchise fee, making its capital requirements surprisingly similar to 85°C.

The major informational difference is Item 19. Paris Baguette publicly cites $2,861,550 in 2024 average unit sales for applicable franchised cafes. 85°C currently does not publish an equivalent number. That does not mean one concept necessarily earns more profit than the other because sales, margins, rent, labor, financing, and investment requirements all differ.

For another model in the coffee sector, see our guide to Starbucks franchise and licensed-store costs.

Who This Investment Makes Sense For

It may make sense for:

• experienced restaurant operators comfortable managing a large staff and on-site food production;
• investors capable of funding a project that can approach $1.8 million;
• operators with strong local market and commercial-real-estate knowledge;
• buyers comfortable evaluating a franchise without a published Item 19 revenue benchmark.

It may not make sense for:

• first-time food operators looking for a small owner-operated bakery;
• buyers whose entire available capital is close to the $50,000 franchise fee;
• investors who require franchisor financing;
• buyers who need a published average sales or profit figure before deciding whether to continue due diligence.

What We Verified

• Checked: The March 13, 2026 FDD-derived total investment range is $819,130 to $1,771,780.
• Confirmed: Current recurring percentage fees include a 6.5% royalty and 1% marketing contribution.
• Cross-referenced: The required software subscription and IT support expense is approximately $1,300 per month.
• Verified: The current 2026 FDD does not provide an Item 19 average franchise-unit sales or profit representation.
• Confirmed: 85°C’s official U.S. site says franchise opportunities are limited, while its global brand site reports more than 1,000 locations worldwide.

Answers to Common Questions

How much does an 85°C Bakery Cafe franchise cost?

The current 2026 total initial investment is approximately $819,130 to $1,771,780. The midpoint is about $1.30 million.

What is the 85°C franchise fee?

The current initial franchise fee is $50,000. That is only one part of the project, with construction and equipment accounting for most of the startup investment.

What royalty does 85°C charge?

The current royalty is 6.5% of gross sales, plus a 1% marketing contribution. Required software and IT support adds approximately $1,300 per month.

How much money does an 85°C franchise make?

85°C does not currently provide an Item 19 financial performance representation showing average franchise-unit revenue or profit. Prospective owners should not treat online revenue or profit estimates as official 85°C earnings claims.

Does 85°C finance franchisees?

Current 2026 FDD information indicates that franchisor financing is not offered. Applicants need to arrange their own funding and should obtain the current FDD directly from 85°C before making an investment decision.