Nestle Toll House Cafe by Chip vs House of Bread Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Nestle Toll House Cafe by Chip vs House of Bread 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
House of Bread Franchise
Investment $43,900 - $499,100$157,000 - $347,000
Franchise Fee $30,000$35,000
Royalty Fee 6%6%
Advertising Fee 1.5%-
Year Founded 20001996
Year Franchised 20001998
Term Of Agreement -10 years
Term Of Agreement -10 years
Renewal Fee -$5K


Business Experience Requirements
 
Nestle Toll House Cafe by Chip Franchise
House of Bread Franchise
Experience -
  • General business experience
    		•

    Financing Options
     
    Nestle Toll House Cafe by Chip Franchise
    House of Bread 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
    House of Bread Franchise
    Training --
    Support Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluationsNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Ad slicks, Regional advertisingCo-op advertising, 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)

    		 25% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 8

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

    Expansion Plans
     
    Nestle Toll House Cafe by Chip Franchise
    House of Bread Franchise
    US Expansion --
    Canada Expansion NoNo
    International Expansion NoYes

    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 House of Bread

    After spending six years as a lawyer, Sheila McCann decided to do something different with her life. At Harvard Business School, she researched several business ideas before settling on a bread bakery. McCann had fond memories of baking with her grandmother as a child in Montana. Inspired by her grandmother's spirit of independence and endurance, she founded House of Bread in San Luis Obispo in 1996.

    The company targets its specialty breads to young professionals, health-conscious consumers and baby boomers looking to increase fiber in their diets. House of Bread lets customers sample its healthful, whole-grain breads and watch the bread being made. All stores feature on-site milling.