FRANCHISE·WATCH·DESK

Verified — real FDD extraction

Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender

GREAT HARVEST BREAD CO.

Food & Dining · independent · est. —

Great Harvest Bread Co. is a bakery-café brand built around fresh-milled whole-wheat breads baked from scratch daily, plus sandwiches, sweets, and other baked goods. A franchisee runs a neighborhood bakery, milling flour, baking, and serving customers, with unusual freedom to customize the menu.

GREAT HARVEST BREAD CO. net unit count declined -7.7% from 20212023 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Showing strain

Distress

0
STABLE

The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.

Exit rate · latest year

6.8%

vs 8.6% across 137 food & dining systems

Cost to open

$168K–$984K

Item 7 total investment range

SBA loan defaults

13.3%

vs 14.8% avg across rated brands

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Weak
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Fair
Transfer / churn15%

transfers vs. base · Table 3

Fair
Promise-keeping10%

actual vs. projected openings · Table 5

Weak
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2021–2023

-7.7%
169202116220221562023

Survival record

FDD Item 20 · outlet status by year

In fiscal 2023, 11 of 161 franchised outlets left the system — a 6.8% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202120222023
Outlets at start172169162
Opened655
Transfers121112
Terminations000
Non-renewals000
Reacquired by franchisor100
Ceased — other reasons81211
Outlets at end169162156
Net change-3-7-6

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 200 SBA-backed loans to GREAT HARVEST BREAD CO. franchisees since 1991. Of the 158 that have resolved, 13.3% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.

Charge-off rate

13.3%

21 of 158 resolved defaulted

Loss given default

63.3%

avg. charged-off $ ÷ approved $

Expected loss

8.4%

default rate × loss severity

Avg. loan · FY2020+

$403,757

what recent franchisees borrowed

Median time to default

53 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

19 vs 19

distinct banks still lending

Charge-off rate by loan approval year (%)

0'940250880202038'10050014250920'19

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO GREAT HARVEST BREAD CO. BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

The owner's side of the deal

FDD × federal loan record

Who finances it

Zions Bank, A Division of

6.8% of this brand's loans

That lender charges off 15.2% of its loans to other franchise brands, vs 14.8% nationally.

Who buys it

77.5%

first-time franchise owners

The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.

Does experience help here?

+1.8pp

multi-unit vs single-unit owners

Owners of multiple units default at 17.6%; single-unit owners at 15.8%.

Computed from 200 SBA 7(a)/504 loans to GREAT HARVEST BREAD CO. franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $35K franchise fee (Item 5) and a total investment of $168K–$984K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$168K–$984K

all-in investment range

Franchise fee (Item 5)

$35K

upfront, one-time

Royalty (Item 6)

5%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$50K

5% of sales, before profit

Over a 10-yr term

$500K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for GREAT HARVEST BREAD CO. with an independent CPA

Modeled risk

FDD Risk Score · modeled from the public record

Elevated

Modeled from the public record, this brand sits mid-pack: riskier than 55% of systems we score.

Risk percentile

55 / 100

Loan-corroborated

Modeled SBA charge-off

13.3%

Observed SBA charge-off

13.3%

Top drivers: Single-lender dependence (raises) · Share financed by high-loss lenders (lowers) · Investment ceiling (log) (lowers) · Net unit growth (raises). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for GREAT HARVEST BREAD CO.. That's a good sign — but it reflects news coverage, not a guarantee.

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GREAT HARVEST BREAD CO. franchise questions, answered from the filings

What percentage of GREAT HARVEST BREAD CO. franchises closed last year?

In GREAT HARVEST BREAD CO.'s latest FDD Item 20 (fiscal 2023), 11 of 161 franchised outlets left the system — an annualized exit rate of 6.8% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a GREAT HARVEST BREAD CO. franchise cost?

Per GREAT HARVEST BREAD CO.'s 2024 FDD, buying in requires an initial franchise fee of $35K (Item 5) and a total initial investment of $168K–$984K (Item 7).

What royalty does GREAT HARVEST BREAD CO. charge?

GREAT HARVEST BREAD CO. charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2024 FDD.

Does GREAT HARVEST BREAD CO. disclose earnings (Item 19)?

Yes — GREAT HARVEST BREAD CO. makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.

How often do SBA loans for GREAT HARVEST BREAD CO. franchises default?

Across 200 SBA-backed loans to GREAT HARVEST BREAD CO. franchisees since 1991, 21 of the 158 that have resolved were charged off — a 13.3% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.

Is GREAT HARVEST BREAD CO. a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk