Nestle Toll House Cafe by Chip vs Sprinkles Cupcakes Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Nestle Toll House Cafe by Chip vs Sprinkles Cupcakes including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
| Investment |
$43,900 - $499,100 | $576,000 - $1,075,000 |
| Franchise Fee |
$30,000 | N/A |
| Royalty Fee |
6% | - |
| Advertising Fee |
1.5% | - |
| Year Founded |
2000 | 2012 |
| Year Franchised |
2000 | 2020 |
| Term Of Agreement |
- | - |
| Term Of Agreement |
- | - |
| Renewal Fee |
- | - |
Business Experience Requirements |
| Experience |
- | - |
Financing Options |
| |
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 |
| 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 |
| US Expansion |
- | Yes |
| Canada Expansion |
No | - |
| International Expansion |
No | Yes |
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 Sprinkles Cupcakes
Sprinkles
opened “the world’s first cupcake bakery” in Beverly Hills, as reported
by the Food Network, and is credited by the Los Angeles Times as “the
progenitor of the haute cupcake craze.” Founded by Candace Nelson, judge
on Food Network’s hit show “Cupcake Wars,” and husband Charles,
Sprinkles has inspired long lines of devoted Hollywood stars and serious
epicureans alike. From Tom Cruise to Oprah Winfrey, Blake Lively to
Ryan Seacrest, celebrities are abuzz about Sprinkles!
Baked
fresh in small batches throughout the day, Sprinkles Cupcakes are
handcrafted from the finest ingredients and contain no preservatives,
trans fats or artificial flavors. Sprinkles has locations nationwide, a
traveling Sprinklesmobile - the world’s first cupcake truck, and sells
its cupcake mixes at over 250 Williams-Sonoma stores throughout the US
and Canada.
In
2012, Sprinkles debuted the world’s first Cupcake ATM and continued its
foray into classic American desserts with the launch of Sprinkles Ice
Cream & Cookies.
“The Sprinkles Baking Book” hit the New York Times
Best Sellers list in October, 2016.
The total investment necessary to begin operation of a Production
Bakery is $781,000 to $1,075,000. This includes $40,000 to $43,250 that
must be paid to the franchisor or affiliate.
The total investment
necessary to begin operation of a Pantry Bakery is $576,000 to $895,000.
This includes $40,000 to $43,250 that must be paid to the franchisor or
affiliate. The franchisor and you may choose to sign a Development
Rights Agreement under which you will develop a number of Sprinkles
Cupcakes Bakeries. The franchisor expects the Development Rights
Agreement to cover between 2 and 10 Sprinkles Cupcakes Bakeries.
The
total investment necessary to begin operation under a Development Rights
Agreement is $40,500 to $202,500. This includes $40,000 to $200,000
that must be paid to the franchisor or affiliate.
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