Nestle Toll House Cafe by Chip vs Erik's DeliCafe Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Nestle Toll House Cafe by Chip vs Erik's DeliCafe 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
Erik's DeliCafe Franchise
Investment $43,900 - $499,100$303,500 - $521,600
Franchise Fee $30,000$35,000
Royalty Fee 6%5%
Advertising Fee 1.5%-
Year Founded 20001973
Year Franchised 20001986
Term Of Agreement -10 years
Term Of Agreement -10 years
Renewal Fee --


Business Experience Requirements
 
Nestle Toll House Cafe by Chip Franchise
Erik's DeliCafe Franchise
Experience -
  • Industry experience
  • General business experience
    		•

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

    Training & Support
     
    Nestle Toll House Cafe by Chip Franchise
    Erik's DeliCafe Franchise
    Training --
    Support Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluationsNewsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
    Marketing Ad slicks, Regional advertisingCo-op advertising, Ad slicks
    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)

    		 78% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 16

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Nestle Toll House Cafe by Chip Franchise
    Erik's DeliCafe 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 Erik's DeliCafe

    After receiving his bachelor's degree in business and marketing, Erik Johnson tried his hand at accounting, security, food service and real estate before purchasing a 600-square-foot store in Scotts Valley, California, back in 1973. With help from his family, Johnson founded Erik's Deli Cafe, a quick-service and catering restaurant that served sandwiches, salads, soups and baked goods.

    Johnson expanded his chain throughout Northern California before selling the first franchise in 1986.