Three days after Jon Lee opened his new business, his equipment broke down and his appendix was threatening to burst.

He had five employees, spent eight days in the hospital and figured that, well, this was it. It wouldn't work. He'd be run out of business.

But the sales manager-turned-baker rose to the occasion and 10 years later, Bread Poets Baking Co. has expanded, adding employees, new equipment, franchising options and has finally placed its product -Lee's coveted doughy creations, such as his famous cinnamon logs or newer, more exotic loafs -on the shelves in supermarkets around town.

"The expansion was kind of twofold,"said Lee, who has a faint smell of sweet dough about him, one that he says he can't detect anymore. "Opening on Mondays and getting into the supermarkets was all driven by convenience for our customers."

The franchising, he said, was a way to expand and possibly help employees further their careers with a solid business plan, the tools and the credibility that comes with the name.

"The franchising industry slogan is to be in business for yourself, but not by yourself,"he said. "That was appealing to me. It gives people the freedom to own their own business and have a proven business model to work with."

The franchise fee is on the lower end at $24,000; total costs to put together the business range from $164,000 to about $260,000. Lee's on his way out of the daily management of the bakery and wants to move in to the franchising business as it pans out. He's hired a new manager, Damon Heupel, to run the store as Lee focuses more on selling and managing the franchise.

Although he doesn't have any takers yet, he does have the business model. While companies wearily watch the financial crisis play out in front of them, Lee is pushing forward and going for the dough, so to speak.

This summer, he was approached by Dan's Supermarkets about putting the product in the stores. It was a move they'd tried before. For a day. But it was something that, years ago, they weren't ready for.

This time was different, though. Lee bought new ovens, hired eight more employees, got a van and delivery equipment, and went to work.

Now, Bread Poets has increased production by 35 percent, putting about 180 loaves of its product into the four Dan's stores in Mandan and Bismarck. It was a difficult but satisfying move, and a $60,000 investment Lee says will pay off in two to three years.

But it's definitely increased visibility and Bread Poets' customer base, he said.

Ralph Dockter, vice president of retail operations of Dan's in Bismarck, said the product has been well-received.

"What we hear is that it's really convenient," Dockter said. "We're actually doing well. Good customer comments about it."

The product is delivered fresh twice a day, because that freshness is key, Lee said.

Looking to the future, Lee isn't too concerned about the economy. It's a thought, of course, but he's always thought of his company's line of breads as an affordable luxury, a value-priced product. He just wants to make sure the first couple of franchise stores are strong and model-based. He's looking for interest in larger metropolitan areas, where there may be a bread shop niche.

"There are so many pockets in the bigger cities where this business would absolutely thrive and do well,"he said.

Truly, though, it's all about the product:Bread Poets has about 40 regular recipes and makes 400 loaves each day, with about 100 different recipes in rotation. Lee's tried various combinations, some that have worked and some that have bombed - like the reuben loaf. Not a big seller, he said. People seem to prefer their sauerkraut on the bread, not in it.

But the cinnamon log has been a best seller since Lee started making it, although it wasn't in his original round of recipes when he started.

"When times are tough, people are still going to eat. Our products are not something that's going to break the bank or hurt our budget,"he said. "As long as people continue to like the product, it's recession resilient."

(Reach reporter Crystal R. Reid at 250-8261 or at crystal.reid@bismarcktribune.com.)