Butler's Chocolate Cafés Limited
Date of Incorporation: 1932
Franchising Since: 2006
Headquarters: Dublin, Ireland
Business and Description: Butler’s Chocolate Cafés Limited is an Irish company established in 1932. Their parent company, The Irish Chocolate Company Limited, and an affiliate (Butler’s Chocolate Ltd.) own Butler’s Irish Confectionary Ltd. The parent company and Butler’s Irish Confectionary own the proprietary mark, Butler’s Chocolate Café. Butler’s Chocolate Café is retail stores specializing in “Butlers” brand chocolates, a variety of confectionary products and “Butlers” chocolate drinks. They also provide pastries, gourmet sandwiches and a complete line of coffees, espressos and teas.
Franchise Offer: Butler’s Chocolate Cafés Limited offers a franchise to operate a single retail store franchise. In certain circumstances Butler’s Chocolate Cafés Limited offer the right to enter into an Area Development Agreement.
Financial Assistance: Butler’s Chocolate Cafés Limited does not offer direct or indirect financing nor do they guarantee any note, lease or obligation.
Training: The training programme will last for approximately 6 weeks, 4 weeks in Ireland (until such a time as Butler’s Chocolate Cafés Limited open a US location) and 2 weeks on the job at the franchise location. The training will cover administration, staff training, food and coffee training etc.
Territory: The Butler’s Chocolate Cafés franchisee will not receive an exclusive territory. Butler’s Chocolate Cafés Limited may establish other franchises, licensed or company owned outlets that may compete with the location.
Renewal and Termination: The length of the term of franchise is 10 years. A renewal term of 5 years is available subject to certain requirements. The franchisee can terminate the contract at any time under any grounds permitted by law. If the franchisee breaches the franchise agreement, Butler’s Chocolate Cafés Limited can terminate the agreement.
Obligations and Restrictions: Butler’s Chocolate Cafés Limited requires that under the franchise agreement, the franchisee or an approved principle owner personally supervise the operation of the Butler’s Chocolate Café. This person does not have to participate in the day-to-day running of the café.
Total Number of Franchised Units for 2006: 0
Total Number of Company Owned Units for 2006: 0
Investment Table:
Estimated Initial Investment for Single Unit Franchise:
Name of Fee |
Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Computer Equipment | $2,500 | $6,000 |
| Leasehold Improvements | $60,000 | $200,000 |
| Furniture, Fixtures and Equipment | $120,000 | $400,000 |
| First Month's Rent | $2,500 | $100,000 |
| Opening Inventory and Supplies | $10,000 | $30,000 |
| Signage | $5,000 | $15,000 |
| Training Expenses | $5,000 | $10,000 |
| Grand Opening Advertising | $4,000 | $4,000 |
| Management Services Fees - 3 months | Not Calculable | |
| Advertising Fees -3 months | Not Calculable | |
| Miscellaneous Opening Costs | $5,000 | $20,000 |
| Additional Funds - 3 months | $10,000 | $50,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT |
$259,000 | $870,000 |
Ongoing Costs for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Management Services Fee | 3% of Gross Revenue |
| Transfer Fee | $20,000 |
| Renewal Franchise Fee |
50% of the then-current Initial Franchise Fee |
| Audit Expenses | Cost of audit will vary depending on the circumstances |
| Interest | Highest legal rate or 2% above the prime rate |
| Costs and Legal Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| National Creative Fund Contributions | 2% of Gross Revenue if Fund established |
| Local Advertising | 1% of Gross Revenues less amounts contributed to a Local Advertising Cooperative (see below) |
| Local Advertising Cooperative | If established, l% of Gross Revenue |
| Insurance Costs | Reimbursement of costs and premium |
| Initial Training | Attendees' expenses in attending initial training; training fee for any new Cafe-manager hired after the Cafe" opens, not to exceed $4,000 |
| Additional Training | Reimbursement of our costs |
| Additional Guidance and Assistance | Per diem charges and expenses |
| Software Maintenance | $1,200 per year |
| Late Report Fee | $80 per Cafe Period |
| Prohibited Product Fine | $250 per day |
The above information has been taken from the UFOC/FDD of Butler’s Chocolate Cafés Limited.
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