Nestle® Toll House® Café
Date of Incorporation: 1998
Franchising since: 2000
Headquarters: Texas
Business and Description: Crest Foods Inc franchise Nestle® Toll House® Café retail outlets that feature cookies, desserts, ice cream, confection products, other baked goods, coffees, other beverage items and promotional items some of which will be prepared with the franchisor and/or Nestlé’s proprietary recipes and ingredients.
Franchise Offer: Crest Foods Inc franchises the right to establish and operate a quick service Nestle® Toll House® Café dessert cafes and quick service sandwich and dessert cafes. A Nestle Toll House dessert Café is typically located in enclosed shopping malls. The in-line and street units will typically range in size from 400 to 1,500 square feet, and kiosks and related storage space will typically range between 300 and 400 square feet. Each dessert cafe generally will have 15 to 30 square feet of service counter space. An area development agreement is also being offered.
Financial Assistance: Crest Foods Inc. does not offer any financial assistance nor do they guarantee any note, lease or obligations.
Training and Assistance: No later than 30 days before the date the Café begins operation, the Operating Principal and General Manager must attend and complete, to the franchisor’s satisfaction, an initial training program for dessert cafes.
Territory: The Franchise Agreement, grants you the right to operate a Cafe at a single location that you select. During the term of the Franchise Agreement, if the franchisee is in compliance with the Franchise Agreement, the franchisor and their affiliates will not establish a Cafe or authorize any other person or entity other than a National Chain establish a Cafe within the Assigned Area. Under the Franchise Agreement, the franchisor will also designate a nonexclusive geographic area known as the Area of Primary Responsibility where the franchisee will have to conduct Local Advertising activities and use all commercially reasonable efforts to advertise and promote the Cafe.
Renewal and Termination: The term of the franchise agreement is 10 years with an option to renew for 2 additional terms of 5 years. The renewal fee is 25% of the then current franchise fee.
Obligations and Restrictions: The franchisee must purchase or lease and install all fixtures, furnishings, equipment (including cash register systems and computer systems), decor items, signs and related items the franchisor require. The franchisee must take up the role of "Operating Principal".
Total Number of Company Owned Units for 2007: 0
Total Number of Company Owned Units Opened for 2007: 0
Total Number of Company Owned Units Closed for 2007: 0
Total Number of Franchised Units for 2007: 101
Total Number of Franchised Units Opened for 2007: 27
Total Number of Franchised Units Closed for 2007: 14
Investment Table:
Estimated Initial Investment for Single Unit Franchise:
| Name of Fee | High | Low |
|---|---|---|
| Initial franchise fee | $30,000 | $30,000 |
| Build out | $40,000 | $195,000 |
| Architectural engineering | $2,000 | $11,000 |
| Project manager fees | $3,000 | $6,000 |
| Legal fees | $1,500 | $3,000 |
| Lease payments and other rental expenses |
$2,500 | $10,000 |
| Equipment and furniture | $25,000 | $71,000 |
| Signage | $7,200 | $12,100 |
| Initial inventory | $4,000 | $9,000 |
| Electronic cash register (POS system), monitoring software and required hardware | $2,100 | $4,200 |
| Phone and Internet service | $350 | $500 |
| Travel, lodging and meals for initial training | $1,900 | $2,700 |
| Business supplies (stationery, business cards, brochures, presentation folders, paper and other materials) | $1,000 | $1,500 |
| Business licenses, permits, etc. (for first year) | $250 | $1,500 |
| Insurance deposits and premiums (for first year) | $1,500 | $2,500 |
| Additional funds | $30,000 | $60,000 |
| Total | $152,300 | $420,000 |
Ongoing Cost for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 6% of Gross Sales |
| Marketing Fund | Currently 1 % of Gross Sales. Maximum of 2% of Gross Sales |
| Local Advertising | Currently 0% of Gross Sales. Maximum of 1% of Gross Sales |
| Cooperative Advertising | Currently 0% of Gross Sales. Maximum of 1% of Gross Sales |
| Advertising & Promotional Materials | Varies, depending on your advertising needs. |
| Intranet Access Fee | Currently $210 per year |
| Interest | 18% or highest rate allowed by applicable law. |
| Initial Training of additional or replacement and successor personnel | $1,500 per person |
| Additional Assistance | If franchisee requests additional assistance, they must pay the current per diem charge for the employees used to provide the assistance and our associated costs. Current per diem $500. |
| Transfer Fee | $15,000 ($30,000 if the transfer occurs during the first year of the Franchise Agreement) plus reasonable costs and expenses associated with the transfer, including training costs, legal and accounting fees and costs, and referral fees paid to franchise brokers. |
| Public Offering | 10,000 or any greater amount necessary to reimburse the franchisor for their reasonable costs and expenses in reviewing the proposed securities offering. |
| Renewal Fee | 25% of then current initial franchise fee. |
| Additional or Remedial Training | The franchisor's cost in providing the training. |
| Annual and Other Mandatory Meetings | The registration fee for the annual or other mandatory meetings. The franchisee must pay this fee even if the Operating Principal fails to attend any mandatory meeting. |
| Support Fee | $100 per week |
| Site Evaluation | $500 per visit, plus expenses. |
| Inspection and Testing | Cost of inspection or testing. |
| Indemnification | Varies according to loss. |
| Audit Fee | Cost of audit. |
| Late Payment or Reporting Fee | $50 per day |
| Extension Fee | $5,000 |
| Manual Replacement Fee | $1,000 |
The above information has been taken from the UFOC/FDD of Crest Foods Inc, Nestle® Toll House®.
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