- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$146K - $586K
- Units as of 2021
88 41% over 3 years
Nestle Toll House Cafe by Chip is a dessert cafe franchise offering cookies, cookie cakes, brownies, ice cream, milkshakes, smoothies, and a whole range of hot and frozen drinks.
Nestle Toll House Cafe by Chip has been in business since 2000. It began franchising later that year. Since beginning to franchise, Nestle Toll House Cafe by Chip has opened more than 80 franchises throughout the United States. It offers exclusive territories for new franchisees, potentially making it so you can operate your business without worrying about your business being taken by other Nestle Toll House Cafe by Chip franchisees.
Why You May Want to Start a Nestle Toll House Cafe by Chip Franchise
A love for sweets may be one of the best reasons to open a Nestle Toll House Cafe by Chip. The company is also looking for franchisees who can deliver the same vibe and sense of innovation that may be loved by their millions of customers. If you see a fit, then you could be the next perfect candidate for a franchise brand that has stood the test of time.
Nestle Toll House Cafe by Chip may allow for absentee ownership for franchisees that are not looking to get involved in a hands-on manner.
They also may offer in-house funding to help franchisees cover the cost of the franchise fee if they qualify. Furthermore, they have partnered with third-party financial lenders that may help cover the costs of the equipment, inventory, startup, accounts receivable, and payroll if you qualify.
What Might Make a Nestle Toll House Cafe by Chip Franchise a Good Choice?
Support may be guaranteed when you become a Nestle Toll House Cafe by Chip franchisee. The brand will guide you through every step and provide training on every aspect of your new business. As you go through the process, you may find that operating a Nestle Toll House Cafe by Chip is very simple and gives you time to focus on business development.
To be part of the Nestle Toll House Cafe by Chip 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.
How To Open a Nestle Toll House Cafe by Chip Franchise
As you decide if opening a Nestle Toll House Cafe by Chip 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 Nestle Toll House Cafe by Chip franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Nestle Toll House Cafe by Chip franchising team questions.
About Nestle Toll House Cafe by Chip
|Franchising Since||2000 (23 years)|
|# of employees at HQ||10|
This company is offering new franchisees in the following US states: Alaska, Alabama, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin, West Virginia, Wyoming
|# of Units||88 (as of 2021)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Nestle Toll House Cafe by Chip 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.
|$18,750 - $37,500|
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.
|$145,500 - $585,800|
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
|25% off franchise 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.
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.
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.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|In-House Financing||Nestle Toll House Cafe by Chip offers in-house financing to cover the following: franchise fee|
|Third Party Financing||Nestle Toll House Cafe by Chip has relationships with third-party sources which offer financing to cover the following: 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||68 hours|
|Classroom Training||16 hours|
Meetings & Conventions
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||Yes|
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.
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.
|# of employees required to run||6-10|
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.
Franchise 500 Ranking History
Compare where Nestle Toll House Cafe by Chip landed on this year's Franchise 500 Ranking versus previous years.
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