Nestle Toll House Cafe by Chip vs Breadsmith Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Nestle Toll House Cafe by Chip vs Breadsmith including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Nestle Toll House Cafe by Chip Franchise
Breadsmith Franchise
Investment $43,900 - $499,100$380,250 - $454,750
Franchise Fee $30,000$30,000
Royalty Fee 6%7% - 5%
Advertising Fee 1.5%-
Year Founded 20001993
Year Franchised 20001993
Term Of Agreement -15 years
Term Of Agreement -15 years
Renewal Fee -$500


Business Experience Requirements
 
Nestle Toll House Cafe by Chip Franchise
Breadsmith Franchise
Experience -
  • General business experience
  • Marketing skills helpful but not necessary
    		•

    Financing Options
     
    Nestle Toll House Cafe by Chip Franchise
    Breadsmith Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/YesNo/Yes
    Receivables No/YesNo/Yes
    Payroll No/YesNo/Yes

    Training & Support
     
    Nestle Toll House Cafe by Chip Franchise
    Breadsmith Franchise
    Training -On-The-Job Training: 219.5 hours Classroom Training: 51 hours
    Support Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluationsPurchasing Co-ops Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform
    Marketing Ad slicks, Regional advertisingAd Templates Social media SEO Website development Email marketing
    Operations 50% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 6 - 10

    Absentee ownership of franchise is allowed. (60% of current franchisees are owner/operators)

    		 10% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 20

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Nestle Toll House Cafe by Chip Franchise
    Breadsmith Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    About Nestle Toll House Cafe by Chip

    Ziad S. Dalal and Doyle P. Liesenfelt founded Nestle Toll House Caf'y Chip in 2000 to serve cookies and a variety of other Nestle products. Each cafe' menu features muffins, croissants, scones, rolls, cookies, cakes, biscotti, iced and hot coffees, and other chocolate treats.

    The total investment necessary to begin operation of a Nestle Toll House Café by Chip franchise is $214,350 to $499,100 for a dine-in unit, $149,350 to $424,750 for an in-line unit, $145,400 to $311,700 for a kiosk and $43,900 to $112,400 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. 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 the farnchisor a development fee equal to$37,500 for the first Café to be developed and $18,750 for each additional Café to be developed.

    About Breadsmith

    While studying in Norway, college student Dan Sterling got his first taste of European bread. Sterling returned to the United States and graduated from Harvard Business School before starting his own company. But he never lost his love of bread, and after volunteering to help a local bakery with its accounting, he decided to launch a bakery of his own. He opened the first Breadsmith location in 1993, and the company began franchising in 1994.

    The total investment necessary to begin operation of a Breadsmith primary franchise store is $380,250 to $449,750 ($377,250 - $451,750 for veterans). This includes $100,000 to $115,000 (less $3,000 if you are a veteran) that must be paid to the franchisor or affiliate.
    An additional investment of $95,500 to $163,500 is necessary if a satellite location is opened in connection with the primary store. This includes $5,000 that must be paid to the franchisor or affiliate.
    Veteran Incentives  10% off franchise fee


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    #333 in Franchise 500 for 2020.
    #333 in Franchise 500 for 2021.