3/10

Franchimp Summary Rating

4 /10
Higher than 68% of peers

Franchise Summary

Description
Nestle Toll House Cafe by Chip is a franchise that offers a variety of baked goods, desserts, and coffee beverages inspired by the iconic Nestle Toll House brand, focusing on freshly baked cookies and a cozy cafe atmosphere. Since its founding in 2000, the franchise has expanded internationally, providing customers with a nostalgic experience through quality ingredients and original recipes.
Company Background
Nestl? Toll House Caf? by Chip is a franchised quick service bakery caf? concept that provides customers with the opportunity to enjoy freshly baked goods and pastries, coffee, espresso-based beverages and smoothies. With our many different products and wide variety of offerings we are able to fit any customer's mood or dietary preference. Nestl? Toll House Caf? by Chip was founded in 1996 in California and has grown into one of the most popular quick service bakery caf?s in North America, with over 390 locations across Canada and the United States.
Franchise Opportunity
We know that caf? owners are looking for a reliable, affordable and delicious product. It's hard to make money in the food industry, especially when you have to deal with all the overhead costs of running a restaurant or caf?. Nestle Toll House Caf? By Chip is an innovative new concept that makes it easy for franchisees to sell freshly-baked cookies made from premium ingredients at their own bakery cafes. Our products are healthy alternatives to other baked goods on the market because they're made with real butter and wholesome ingredients like flour, sugar and eggs. They also taste great! With our help as your partner in this business venture, we can help you achieve financial success!
Corporate Structure
We were incorporated as a Texas corporation in March 1998. Our principal place of business is 101 West Renner Road, Suite 165, Richardson, Texas 75082, and we do business under our corporate name and the Marks as described below. Since June 1, 2000, we have franchised retail outlets that feature cookies, desserts, ice cream, confections, other baked goods, savory items, coffees and other beverages and promotional items (“Cafes” or “franchised businesses”). The Cafes are generally located within enclosed shopping malls, outlet centers, lifestyle centers, strip shopping centers, major retailers, medical centers, airports and other similar facilities with a captive market customer base. The Cafes will feature the marks “Nestle Toll House” and “Cafe by Chip.” These principal marks and all other marks which may be designated by us in the future in writing for use with the System (defined below) are referred to in this Disclosure Document as the “Marks.” As of the date of this Disclosure Document, we (through our affiliate, Crest Foods Venture, LLC) own two Cafes and a Haagen Dazs ice cream shop, which is operated under a management leveraging arrangement. As of the date of this Disclosure Document, except as described in this Disclosure Document, we do not own or operate any Cafe or engage in any other business activity.
Investment and Franchisee Fees
The total investment necessary to begin operation of a Nestle Toll House Cafe by Chip franchise is $214,450 to $585,800 for a dine in unit, $149,450 to $471,800 for an in line unit, $145,500 to $328,000 for a kiosk and $44,000 to $112,500 for a non baking satellite cart or kiosk. This includes $37,500 ($18,750 for a non traditional venue) that must be paid to the franchisor or affiliate and $5,000 that must be paid to the franchisor or a designated marketing firm. This also includes an additional $7,500 if a satellite location is included that must be paid to the franchisor or affiliate. If you are acquiring franchise development rights, you will pay us a development fee equal to$37,500 for the first Cafe to be developed and $18,750 for each additional Cafe to be developed.
Royalties and Marketing Fees

Royalties : 6.0% of revenue

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

Employee Contact Database

# Name Position Phone Number Email Address

Nestle Toll House Cafe by Chip Franchise System Development in 2020

FAQ

How much investment do I need to start my own Nestle Toll House Cafe by Chip business?
Franchisees typically require at least $145 to $585 investment to get their Nestle Toll House Cafe by Chip business started
What are the initial franchise fees for Nestle Toll House Cafe by Chip?
Franchisees typically need to pay at least $37 in fees directly to Nestle Toll House Cafe by Chip in order to earn the right to launch their business
How much money can I make with a Nestle Toll House Cafe by Chip franchise? What are the average revenues for a typical Nestle Toll House Cafe by Chip business?
We haven’t done the math on how much revenue a typical Nestle Toll House Cafe by Chip brings in each year. We estimate that other franchisees in the Food & Beverage industry generate $1,201,697 revenue, so we would expect Nestle Toll House Cafe by Chip to generate a similar amount
How long do I need to commit to running a Nestle Toll House Cafe by Chip unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

4 /10
The Franchisor's investment costs ranges from $568,020 to $2,528,500 which is Much Higher than the $0 to $0 average in the Restaurants (Sit-Down) 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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