Tous Les Jours
Tous Les Jours offers bakery-café franchises with locations in high-volume retail centers, specializing in quality baked goods, sandwiches, and coffee. Known for its unique selection and commitment to freshness, it operates in the competitive food service sector.
Tous Les Jours franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Tous Les Jours franchised business ranges from $718,230 to $1,624,644. This includes an Initial Franchise Fee that must be paid to the franchisor or its affiliate(s), which is between $233,500 and $323,000 [p.2].
What is the initial franchise fee?
The initial franchise fee is $40,000 for a single-unit franchise and varies for area development rights. For an area developer, the initial fee is $40,000 for the first outlet plus $20,000 for each of the second through fifth outlets, and $10,000 for each additional outlet. This fee is non-refundable [p.14, p.89, p.24].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of the Gross Sales of the Franchised Outlet, payable each payment period on the Gross Sales for the preceding period. Additionally, franchisees must contribute to the Ad Fund and make expenditures on local advertising and promotion based on the Gross Sales of the Franchised Outlet [p.89, p.90].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in these excerpts. However, renewal is possible at the option of the franchisor, with the franchisee required to execute a new agreement that may include changes to royalty fees and advertising obligations [p.123]. Additionally, you must give written notice of your election to renew between 12 to 18 months before the end of the current term or renewal term [p.87].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of your franchise except for good cause [p.6]. Additionally, if you are a legal entity such as a corporation, partnership, or limited liability company owning the franchise rights, you must designate a 'Designated Owner' who must own and control at least 10% interest in Franchisee and have decision-making authority regarding the operation of the Franchised Outlet [p.45]. The franchisor must approve your Designated Owner, and you must also designate a qualified replacement if necessary.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity (not more than 30 days) to do so [p.6]. Additionally, the franchisor has the option to terminate the agreement at its discretion by having the franchisee execute the form of franchise agreement offered to new System Franchisees upon expiration [p.123].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, TLJ-owned outlets, or competitive brands controlled by the franchisor. Your 'Territory' is defined based on a one-mile radius from your Franchised Outlet, with adjustments for population density, and you are responsible for selecting the site, subject to approval by the franchisor. [p.39]
What training and ongoing support does the franchisor provide?
The franchisor provides initial training consisting of at least ten days of instruction by their management team on all aspects of operating a franchise. This includes reviewing and discussing the Manuals and operational aspects. Ongoing, the franchisor may require additional or supplemental training for new employees, with fees applicable for such courses [p.37]. The franchisor also offers ongoing support through manuals, operations methods, business practices, design specifications, and other items of trade dress [p.158], along with marketing and public relations programs [p.239].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if a franchisee is considering purchasing it [p.55]. However, the franchisor does not make representations about future financial performance and does not authorize its employees to do so either orally or in writing [p.61]. Any other financial performance information received by a franchisee should be reported to the Legal Department of Tous Les Jours International Corp., as well as to the Federal Trade Commission and appropriate state regulatory agencies if provided [p.61].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the Products and services that the franchisor specifies from time to time, unless otherwise approved in writing. You must buy TM Products, Specified Products, Branded Products, and certain Operating Assets from the franchisor or third-party suppliers designated by them [p.15]. For example, certain TM Products, Specified Products, Branded Products, and Operating Assets like baking ovens, kitchen equipment, smallwares, and display cases must be purchased from the franchisor [p.24]. This isn't specified in the excerpts for all other goods and services you might need to buy or lease.