Nestle Toll House Cafe by Chip
Company Information
101 West Renner Road, Suite 165 Richardson, Texas 75082
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.
Not Available
2 Ongoing Lawsuits
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Franchise Rating
Franchimp Summary Rating
3/10
Earning Transparency
1/10
Investment Accessibility
4/10
Franchise System Development
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Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $37,500 Maximum: $50,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $145,500 Maximum: $585,800
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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