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Updated RecentlyVan Houtte vs Factory Donuts Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Van Houtte vs Factory 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 | $250,000 - $300,000 | $213,300 - $341,300 |
| Franchise Fee | $27,500 | $20,000 |
| Royalty Fee | 5% | 5% |
| Advertising Fee | - | 2.5% |
| Year Founded | 1919 | 2017 |
| Year Franchised | 1983 | 2017 |
| Term Of Agreement | 10 years | 10 years +10 |
| Term Of Agreement | 10 years | 10 years +10 |
| 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/No | -/- |
| Start-up Costs | No/No | -/- |
| Equipment | No/No | -/- |
| Inventory | No/No | -/- |
| Receivables | No/No | -/- |
| Payroll | No/No | -/- |
Training & Support |
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| Training | - | - |
| Support | Meetings, Grand opening, Field operations/evaluations, Purchasing cooperatives | - |
| Marketing | Co-op advertising, Regional advertising | - |
| Operations |
5% of all franchisees own more than one unit
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | Most Factory Donuts will employ 10-20 employees |
Expansion Plans |
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| US Expansion | - | Yes |
| Canada Expansion | No | - |
| International Expansion | Yes | - |
Company Overviews
About Van Houtte
Albert-Louis Van Houtte, a French immigrant, set up his first grocery store in Montreal in 1919. Van Houtte stocked the store with specialty products from Europe, including coffee. Each day he would roast small batches of coffee in the back of his shop, and soon Van Houtte had built up a reputation in Montreal for selling quality coffee. In the more than 80 years since its founder began roasting European coffees, A.L. Van Houtte Cafe-Bistro has grown beyond Montreal and has expanded its menu. Today, each cafe-bistro serves a variety of coffee and espresso drinks, as well as teas, soups and sandwiches.
About Factory Donuts
Factory Donuts is more than just a business of making great tasting donuts and coffee. It’s a culture. At Factory Donuts you will be part of a family; whether it’s as an employee or as a franchise partner. The founders' background and their beliefs for a well operated, highly efficient, and value oriented business strategy make Factory Donuts a stand out business model that others strive to be.
The business model at Factory Donuts is about simplicity and efficiency. Donuts are a billion dollar industry and growing. The idea of a fresh, made to order donut along with premium coffee drinks is a segment that Factory Donuts will fill.