Nestle Toll House Cafe by Chip vs Factory Donuts Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Nestle Toll House Cafe by Chip vs Factory Donuts 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
Factory Donuts Franchise
Investment $43,900 - $499,100$213,300 - $341,300
Franchise Fee $30,000$20,000
Royalty Fee 6%5%
Advertising Fee 1.5%2.5%
Year Founded 20002017
Year Franchised 20002017
Term Of Agreement -10 years +10
Term Of Agreement -10 years +10
Renewal Fee --


Business Experience Requirements
 
Nestle Toll House Cafe by Chip Franchise
Factory Donuts Franchise
Experience --

Financing Options
 
Nestle Toll House Cafe by Chip Franchise
Factory Donuts Franchise
  In-House/3rd PartyIn-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
 
Nestle Toll House Cafe by Chip Franchise
Factory Donuts Franchise
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)

Most Factory Donuts will employ 10-20 employees

Expansion Plans
 
Nestle Toll House Cafe by Chip Franchise
Factory Donuts Franchise
US Expansion -Yes
Canada Expansion No-
International Expansion No-

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 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.