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Updated RecentlyNestle Toll House Cafe by Chip vs Southern Maid Donuts Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Nestle Toll House Cafe by Chip vs Southern Maid Donuts including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $43,900 - $499,100 | $64,000 - $227,000 |
| Franchise Fee | $30,000 | $5,000 |
| Royalty Fee | 6% | - |
| Advertising Fee | 1.5% | - |
| Year Founded | 2000 | - |
| Year Franchised | 2000 | - |
| Term Of Agreement | - | - |
| Term Of Agreement | - | - |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | - | - |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/Yes | -/- |
| Start-up Costs | No/Yes | -/- |
| Equipment | No/Yes | -/- |
| Inventory | No/Yes | -/- |
| Receivables | No/Yes | -/- |
| Payroll | No/Yes | -/- |
Training & Support |
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| Training | - | - |
| Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | - |
| Marketing | Ad slicks, Regional advertising | - |
| 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) | - |
Expansion Plans |
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| US Expansion | - | - |
| Canada Expansion | No | - |
| International Expansion | No | - |
Company Overviews
About Nestle Toll House Cafe by Chip
About Southern Maid Donuts
Southern Maid Donuts began in 1937 by Mr. and Mrs. J.B. Hargrove. A
young couple coming out of the throws of the Great Depression, they
created Southern Maid because they saw the need in the market for
quality donuts. They created their own recipes, which have stood the
test of time. Quality ingredients and uncompromised procedures are
reason for the continued success of the Hargrove family to this very
day.
The product was so well accepted that besides selling donuts in their
privately owned shops that they were sought out by individuals wanting
to use Southern Maid products in their own bakeries and stores. The
Hargrove couple began to license their trademark and to help individuals
realize their dreams of owning their own businesses. Today, Southern
Maid is used in over 100 stores.
The Southern Maid name came about because of being from the South. Mr.
and Mrs. Hargrove wanted a name that encompassed a feeling as well as
humble southern traditions and memories. Part of this Southern Maid tradition was a large sponsorship for several years of the Louisiana
Hayride Show in Shreveport, Louisiana. Many a young entertainer sang the
praises of Southern Maid Donuts. An interesting note: Elvis did the
only commercial of his life for any product on November 6th, 1954 for Southern Maid Donuts. He sang the jingle. "You can get them piping hot
after 4 P.M., you can get them piping hot, Southern Maid Donuts hits the
spot, you can get them piping hot after 4 P.M." Elvis frequented the
Shreveport store for donuts on his visits to the Louisiana Hayride.
Other entertainers that sang the praises of Southern Maid include Minnie
Pearl, Johnny Horton, and Johnny Cash. The Johnny Cash version was
released on the Best of the Louisiana Hayride Volume 4.
Southern Maid products are also used institutionally in the form of
pancake and muffin mixes. The Hargroves had created a pancake mix for
home use. Over time, the mix was given to friends and family members.
The requests for the mix got so large that they began to package it in
50-pound bags for selling to hotels and restaurants.
Southern Maid has remained a tradition in the South because of the
continued use of quality ingredients and procedures. We have been family
owned since inception in 1937. Though Mr. and Mrs. Hargrove have since
passed on, Southern Maid has evolved into the second and third
generations of family ownership and management.