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General

Industry

-

Category

Food and Beverage

SBA Identifier

S1188

Year of Founding

1998

Fees

Marketing Fee

1.5%

Royalty Fee

6%

Franchise Fee

$18,750-$37,500

Investment Range

$214K-$586K

Location units

Total U.S. Locations

90

U.S. Franchised Units

88

U.S. Corporate Units

2

Headquarters (City)

TX

Other

Item 19 - Franchise Financials

-

Financing Availability

-

Started Offering Franchises

2000

Issuance of FDD Data

05/05/2021

What to know about Nestle Toll House Café franchise?

The franchises offered are for the establishment and operation of quick service bakery cafes ("Cafés").

Nestle Toll House Café is based in Richardson, TX. Scroll down to learn more!

How Much Does a Nestle Toll House Café Franchise Cost?

Are you wondering how much is a Nestle Toll House Café franchise? Before starting a Nestle Toll House Café franchise, it is important to know the Nestle Toll House Café franchise fee ($28,125) working capital and other costs required to start the business.

The minimum investment amount required to open a Nestle Toll House Café franchise is $214,450 and can go all the way up to $585,800. Keep in mind, you should also allocate additional funds to live off of while the Nestle Toll House Café business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Nestle Toll House Café franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Nestle Toll House Café business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Nestle Toll House Café franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Industry Report Request

Download our guide to compare Nestle Toll House Café. Hotels to the Cleaning and Maintenance, Outdoor Maintenance industry.

Franchise Data

Year Start of year Units Opened Units Closed Total End of Year
2016 103 12 13 102
2017 102 18 16 104
2018 112 7 20 99
2019 99 9 12 96
2020 96 6 14 88

Additional Details

How much does a Nestle Toll House Café franchise owner make?

Nestle Toll House Café franchise earnings and revenue can vary significantly from one franchisee to another. The Nestle Toll House Café franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors. Nestle Toll House Café unfortunately does not disclose financials on how much Nestle Toll House Café franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S. Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, Nestle Toll House Café does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with Nestle Toll House Café franchisees. Do note that Nestle Toll House Café is not alone as about 40% of franchises do not disclose franchisee financial performance. At Vetted Biz, we suggest you to speak with 5 to 10 Nestle Toll House Café franchisees to understand how much money they are making from their Nestle Toll House Café business. You should also speak to former Nestle Toll House Café franchisees to understand why they left the system. Did they sell their Nestle Toll House Café at a profit? Were they forced to close their Nestle Toll House Café franchise down because it kept losing money?

What is the Nestle Toll House Café Franchise Fee?

Owning a Nestle Toll House Café franchise requires a 6% royalty fee and a 2% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. Keep in mind, there is also an initial Nestle Toll House Café franchise fee of $28,125 that is included in the initial investment amount of $214,450 to $585,800. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Nestle Toll House Café franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Nestle Toll House Café franchise fee of $28,125. Visit the Nestle Toll House Café metrics tab to explore how the franchise, royalty and marketing fees compare to other Food and Beverage franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Nestle Toll House Café founded?

Nestle Toll House Café was founded 24 years ago in 1998. Nestle Toll House Café started offering franchises in 2000. At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Nestle Toll House Café locations are in the U.S.?

As of Issuance of 2021, there were 88 Nestle Toll House Café locations owned and operated by franchisees across the U.S. There are also 2 corporate locations owned and operated by Nestle Toll House Café. Most Food and Beverage franchises like Nestle Toll House Café have more franchised locations than corporate locations.

How many Nestle Toll House Café franchises opened over the past few years?

Over the prior 3 years we have data for, Nestle Toll House Café has opened 22 outlets throughout the U.S. Visit the Nestle Toll House Café metrics tab to explore how the openings compare to other Food and Beverage franchises.

How many Nestle Toll House Café franchises closed over the past few years?

Over the prior 3 years we have data for, Nestle Toll House Café has closed 46 outlets throughout the U.S. Visit the Nestle Toll House Café metrics tab to explore how the closures compare to other Food and Beveragefranchises.

Is Nestle Toll House Café growing? Are they opening more locations than they are closing?

The net unit growth rate for Nestle Toll House Café over the past 3 years is -21%. Over the last year we have data for, Nestle Toll House Café had a net unit growth rate of -8%. Without a comparison, this number doesn’t mean much. Compare how the Nestle Toll House Café growth rate compares to 2,000+ other franchises and Food and Beverage franchises like Nestle Toll House Café. More info in the Nestle Toll House Café metrics tab.

Is Nestle Toll House Café franchise eligible for an SBA Loan?

Nestle Toll House Café is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here. Nestle Toll House Café franchise was assigned the SBA Franchise ID of S1188 on 10/1/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Nestle Toll House Café that are reviewed and found eligible under SBA's affiliation rules and other eligibility criteria.

Is Nestle Toll House Café a franchise in the United States?

According to the SBA, Nestle Toll House Café meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Nestle Toll House Café provides you with an FDD if you are in discussion to buy a Nestle Toll House Café.

What is the Nestle Toll House Café Franchise for Sale Rate?

The Nestle Toll House Café systemwide health and franchisee satisfaction can be measured by the Nestle Toll House Café franchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor. The franchise for sale rate for Nestle Toll House Café over the past 3 years is 33%. Over the last year we have data for, Nestle Toll House Café had a franchise for sale rate of 7%. Without a comparison, this number doesn’t mean much. Compare how the Nestle Toll House Café franchise for sale rate compares to 2,000+ other franchises and Food and Beverage franchises like Nestle Toll House Café. More info in the Nestle Toll House Café metrics tab.

What is the Nestle Toll House Café Franchise Failure Rate?

Nestle Toll House Café franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise! Nestle Toll House Café failure rate over the past 3 years is 52%. Over the last year we have data for, Nestle Toll House Café had a franchise failure rate of 16% Without a comparison, this number doesn’t mean much. Compare how the Nestle Toll House Café failure rate compares to 2,000+ other franchises and Food and Beverage franchises like Nestle Toll House Café. More info in the Nestle Toll House Café metrics tab.

How can I find out more details on Nestle Toll House Café franchise?

Visit the Nestle Toll House Café metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today for exclusive access on this franchise opportunity!

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General

Industry

-

Category

Food and Beverage

SBA Identifier

S1188

Year of Founding

1998

Fees

Marketing Fee

1.5%

Royalty Fee

6%

Franchise Fee

$18,750-$37,500

Investment Range

$214K-$586K

Location units

Total U.S. Locations

90

U.S. Franchised Units

88

U.S. Corporate Units

2

Headquarters (City)

TX

Other

Item 19 - Franchise Financials

-

Financing Availability

-

Started Offering Franchises

2000

Issuance of FDD Data

05/05/2021

Franchise Fee Midpoint

The percentage change of total franchise units from one year to the next

 

1 year

3 years

Nestle Toll House Café

-3%

-8%

Industry median

All franchises median

Unlock premium content

Franchise Disclosure Document

Download Latest FDD (2021)

Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Nestle Toll House Café

13%

50%

Industry median

All franchises median

Unlock premium content

Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Nestle Toll House Café

11%

34%

Industry median

All franchises median

Unlock premium content

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Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Nestle Toll House Café

$400,125

Industry median

All franchises median

Unlock premium content

Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Nestle Toll House Café

6%

Industry median

All franchises median

Unlock premium content

Franchise Fee Midpoint

The percentage change of total franchise units from one year to the next

 

1 year

3 years

Nestle Toll House Café

-3%

-8%

Industry median

All franchises median

Unlock premium content

Item 19 – Financial Performance Representations

Historical financial performance representations

Unlock premium content

Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

Unlock premium content

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Business details

Company name

-

Business email

-

Mailing address

101 West Renner Road, Suite 165

State headquarters

Texas

Key leadership

Nestle Toll House Café

Phone

+1 (000) 000-00-00

City

Richardson

Zip code

75082

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