Start a House of Chimney Cakes Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $152K - $220K

Units as of 2021: 3 200.0% over 3 years

Street food culture may be one of the most authentic indulgences worldwide. For many people, sampling exciting assortments is an everyday treat. House of Chimney Cakes is a brand that was born from a passionate love for Kürtöskalács, the official Hungarian dessert.

Founded in 2017, House of Chimney Cakes serves customers with ice-cream-filled fresh chimney cakes decorated with toppings of choice. They believe that eating the pillow pastry cone is an out-of-world experience for dessert lovers who tease their taste buds with each precious bite.

Customers may adore House of Chimney Cake’s handcrafted desserts and the range of decorated delights that are both delicious and Insta-worthy.

House of Chimney Cakes began franchising in 2019 and is actively seeking to add franchisees to its name in both the United States and Europe.

Why You May Want To Start a House of Chimney Cakes Franchise

House of Chimney Cakes is a cake shop with a unique offering, and its popularity is expected to be driven by its excellent signature creations with no equivalent. Fans of the cake shop may consider it the go-to sweet destination that's constantly evolving to meet their needs.

House of Chimney Cakes is seeking individuals with an entrepreneurial spirit who are willing to manage the daily operations of running a cake shop.

Opening a House of Chimney Cakes franchise may offer a more predictable outcome than investing in a completely new brand that could struggle to thrive in an already crowded and competitive industry.

With two types of opportunities, including the single unit and area development franchises, House of Chimney Cakes may cater to your unique needs as a franchisee. The brand gives exclusive territories with both franchise types in an effort to help franchisees succeed.

What Might Make a House of Chimney Cakes Franchise a Good Choice?

House of Chimney Cakes wishes to be a place where customers can get delectable Hungarian sweet bread, congregating with loved ones to enjoy chimney cakes that are both delicious and worthy conversation starters. Franchisees are responsible for growing the established brand and delivering the quality that customers should come to love.

To be part of the House of Chimney Cakes team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth requirements.

How To Open a House of Chimney Cakes Franchise

House of Chimney Cakes understands that operating a cake shop for new franchisees can seem daunting at first. As a result, the brand offers comprehensive hands-on training to equip franchisees with all the expertise and skills necessary for success in an effort to make the process easier.

As you decide if opening a House of Chimney Cakes franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a House of Chimney Cakes would do well in your community. As part of your due diligence, you may want to speak to existing franchisees and ask the House of Chimney Cakes franchising team questions.

Company Overview

About House of Chimney Cakes

Industry	Food
Related Categories	Miscellaneous Baked Goods, Baked Goods
Founded	2017
Leadership	Omar Lara, CEO
Corporate Address	173 Center Street Promenade Anaheim, CA 92805
Social	Facebook, Twitter, Instagram

Business Overview

Franchising Since	2019 (5 years)
# of employees at HQ	9
Where seeking	This company is offering new franchises in the following US states: California, Texas This company is offering new franchises in the following international regions: Europe (Western)
# of Units	3 (as of 2021)

Information for Franchisees

Here's what you need to know if you're interested in opening a House of Chimney Cakes franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$25,000 - $35,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$152,220 - $220,350
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$25,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	6%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	1%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	House of Chimney Cakes has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	46 hours
Classroom Training	10 hours
Ongoing Support	Grand Opening Site Selection
Marketing Support	Social Media

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	6
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes