2/10

Franchimp Summary Rating

3 /10
Higher than 73% of peers

Franchise Summary

Description
As a Tom N Toms franchisee, you will operate a specialty coffeehouse offering premium coffee products and complementary food and beverages.
Company Background
Tom N Tom is a coffee franchise that offers premium coffees and complementary food and beverages. It was founded in 1977 by two brothers, Tommy and Timmy Nelson, who wanted to share their love of great coffee with the world. The company has grown from one location to over 700 locations across the United States and internationally. They continue to provide customers with high-quality products--and now they're looking for likeminded people like you!
Franchise Opportunity
Owning and operating a successful coffeehouse can be difficult. You need to find the right location, perfect your coffee recipes, and create a welcoming atmosphere for customers. With so many coffeehouses out there, it can be hard to make your business stand out from the competition. In order to be successful, you need to offer something special that customers can't find at other places. Tom N Toms offers franchisees the opportunity to own a specialty coffeehouse with all of the training and support they need to be successful. Our unique coffee recipes are based on traditional Korean methods, and our comfortable and inviting atmosphere is perfect for any customer.
Corporate Structure
We are a California limited liability company formed on January 30, 2012. Our principal business address is 125 N Western Ave., Suite 113, Los Angeles, CA 90004. We do business under our corporate name “Tom N Toms Franchise” and our brand names "Tom N Toms,” “Tom N Toms Coffee” and “Tom N Toms Coffeehouse.” We do not do business under any other name. We have no predecessors, and we have not offered franchises for any other line of business. We started offering Tom N Toms franchises in March 2012.
Investment and Franchisee Fees
The initial investment necessary to begin operation of a Tom N Toms franchised business ranges from $370,400 to $487,300. This includes $30,000 that must be paid to the franchisor as a franchise fee, and the initial inventory purchase requirementranging from$12,900to $23,000, which ispaid to us or our affiliate. In the case of an area developer, the development fee to be paid to the Franchisor is equal to $30,000 for the first Coffeehouse plus $15,000 for each additional Coffeehouse to be developed under the area development agreement. The development fee is applied pro rata to the initial franchise fees due for each Coffeehouse to be developed after the first. Your estimated initial investment will vary based on the number of Coffeehouse to be developed within the area specified in the area development agreement, under which you will have exclusive right to develop an agreed number of Coffeehouses within a specific time period.

Earnings Transparency

1 /10
This Franchise discloses much less information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Tom N Toms Coffee Franchise System Development in 2020

FAQ

How much investment do I need to start my own Tom N Toms Coffee business?
Franchisees typically require at least $370 to $487 investment to get their Tom N Toms Coffee business started
What are the initial franchise fees for Tom N Toms Coffee?
Franchisees typically need to pay at least $30 in fees directly to Tom N Toms Coffee in order to earn the right to launch their business
How much money can I make with a Tom N Toms Coffee franchise? What are the average revenues for a typical Tom N Toms Coffee business?
We haven’t done the math on how much revenue a typical Tom N Toms Coffee brings in each year. We estimate that other franchisees in the Food & Beverage industry generate $1,201,697 revenue, so we would expect Tom N Toms Coffee to generate a similar amount
How long do I need to commit to running a Tom N Toms Coffee unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

3 /10
The Franchisor's investment costs ranges from $513,394 to $880,343 which is Much Higher than the $0 to $0 average in the Food Retail (Grocery, Specialty Foods) industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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