Tous Les Jours Franchise in 2024: Costs, Fee & FDD
Discover the world of Tous Les Jours, a standout bakery café franchise blending French techniques with Korean flavors. Explore their impressive growth and unique market positioning. Ready to dive into a growing franchise opportunity? Read our detailed analysis to learn more!
Table of Contents:
Tous Les Jours is a popular French-inspired bakery café franchise that has made a significant mark in the global food industry. Founded in 1997 in Seoul, South Korea, by the CJ Group, Tous Les Jours combines traditional French baking techniques with a Korean flair. This fusion approach has enabled it to stand out in a competitive market by offering unique products that blend Western and Eastern influences. The brand’s name, which translates to “Every Day,” reflects its commitment to providing fresh, high-quality bakery items every day.
The core offerings of Tous Les Jours include a wide range of bakery products such as artisanal breads, pastries, and cakes, all crafted from premium ingredients. Additionally, the franchise provides an assortment of beverages, including coffee and tea, catering to a diverse clientele. The core market for Tous Les Jours encompasses individuals who appreciate freshly baked goods with a touch of sophistication, making it a favorite among both urban professionals and families. Its commitment to quality and authenticity has helped it build a loyal customer base.
As of now, Tous Les Jours operates over 1,200 locations across more than 10 countries, including the United States, South Korea, and Vietnam. The franchise has grown substantially since its inception, and its stores collectively serve thousands of customers daily. This extensive network highlights the brand’s international appeal and successful expansion strategy, which has helped it become a prominent player in the global bakery segment.
For prospective franchisees, Tous Les Jours offers a robust support system, including comprehensive training programs that cover both operational and marketing aspects. Franchisees benefit from ongoing support, including assistance with site selection, store design, and inventory management. The brand’s commitment to maintaining high standards ensures that franchisees are well-prepared to deliver the quality and experience that customers have come to expect. This thorough support system is one of the key reasons behind Tous Les Jours’ sustained success and growth.
Tous Les Jours offers robust support and training to its franchisees, ensuring they are well-prepared to manage their bakery operations. The franchise provides comprehensive initial training covering baking techniques, store management, customer service, and marketing strategies. Ongoing support includes regular updates on product offerings, operational guidance, and marketing assistance. Additionally, franchisees benefit from the brand’s established supply chain and vendor relationships, which help maintain product quality and consistency. This support system is designed to help franchisees thrive and contribute to the overall success of the Tous Les Jours brand.
Tous Les Jours Franchise Insights
- Tous Les Jours has demonstrated impressive growth with a 25% year-over-year increase, significantly outpacing the industry average of 0%, indicating strong market performance and brand appeal.
- In 2023, Tous Les Jours’ median gross sales reached $1,781,946, reflecting a 5% increase from the previous year, and they are projected to rise by another 6% in 2024, highlighting consistent revenue growth.
- With a 3-year failure rate of just 4% compared to the industry average of 11%, Tous Les Jours offers a highly stable franchise opportunity, suggesting a robust support system and operational success.
- Tous Les Jours combines French bakery techniques with Korean flavors, creating a unique blend that has resonated globally and contributed to its rapid expansion. This fusion has helped it stand out in a crowded market and attract a diverse customer base.
Tous Les Jours Franchise Key indicators
Growth YOY (%)
25%
vs industry 0%
Total investment:
$718K-$949K
3-year Failure Rate
4%
vs industry 11%
Sales-to-Investment ratio
2.1:1
How much does it cost to open a Tous Les Jours franchise?
Understanding the investment and capital requirements is essential for potential franchisees of Tous Les Jours. The costs associated with opening a franchise impact financial planning and decision-making. Knowing these expenses helps you assess your financial readiness and secure the necessary funding to start and sustain your business. A clear understanding of the investment required is crucial for meeting the franchisor’s expectations and setting up a successful franchise operation.
Min & Max Investment
Opening a Tous Les Jours franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Tous Les Jours below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Real Estate Security/Utility Deposits | $7,000 | $15,000 |
| Equipment, Fixtures & Furniture | $230,000 | $262,000 |
| Leasehold Improvements | $320,000 | $450,000 |
| Opening Inventory | $27,980 | $40,144 |
| Insurance | $1,000 | $1,500 |
| Signage, Menu Board | $12,000 | $25,000 |
| Grand Opening Marketing Program | $10,000 | $20,000 |
| POS and Cash Registers/Other Office Equipment | $10,250 | $15,250 |
| Additional Funds – 3 months | $60,000 | $80,000 |
| Total Estimated Initial Investment | $718,230 | $948,894 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Tous Les Jours franchise, the required capital involves both the initial investment costs and financial qualifications. Here’s a breakdown:
- Initial Investment The total estimated initial investment for a Tous Les Jours franchise typically ranges from $718,000 to $949,000. This includes the franchise fee, real estate costs, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming you can obtain financing, you should be prepared to invest 20% of the total required investment for Tous Les Jours in the form of equity (cash).
- Liquid Assets Requirement While specific figures may vary, franchisees are generally expected to have around $150,000 to $200,000 in liquid assets. This ensures they have enough cash on hand to manage startup costs and unexpected expenses during the initial phase.
- Net Worth Requirement The recommended net worth for a Tous Les Jours franchisee is approximately $500,000 to $750,000. This figure encompasses the total value of assets such as real estate and investments, minus any liabilities, ensuring the franchisee has sufficient financial stability.
How much does a Tous Les Jours franchise owner make?
Calculating the salary of a Tous Les Jours s franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Tous Les Jours franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Tous Les Jours Revenue & Gross Sales
In 2023, Tous Les Jours reported median gross sales of $1,781,946, marking a 5% increase from the previous year. This upward trend is projected to continue in 2024, with an expected 6% rise, reaching approximately $1,888,863. These figures reflect the franchise’s strong market performance and consistent revenue growth, indicating a robust and expanding business model.
Which key factors impact the average revenue performance of Tous Les Jours franchisees?
The growth in Tous Les Jours’ U.S. franchisee median gross sales from 2022 to 2023 can likely be attributed to several key factors. First, the brand’s unique blend of French and Korean bakery offerings continues to attract a broad and diverse customer base, driving increased foot traffic and sales. Additionally, enhanced marketing strategies and promotional activities may have played a role in boosting brand visibility and customer engagement. Operational improvements, such as streamlined supply chains and updated store designs, could also contribute to higher sales performance. Furthermore, rising consumer interest in premium, fresh bakery products supports continued revenue growth, as franchisees benefit from an expanding market and growing brand recognition.
What are the key primary ongoing operational costs I should consider if I were to open a Tous Les Jours franchise?
When considering opening a Tous Les Jours franchise, it’s essential to account for various ongoing operational costs to ensure financial stability and successful management. Here’s a breakdown of the primary expenses you should anticipate:
- Food and Beverage Costs Regular procurement of high-quality ingredients for bakery items and beverages.
- Labor Costs Wages for staff, including bakers, servers, and management.
- Rent Monthly lease payments for retail space, which can vary based on location.
- Utilities Costs for electricity, water, gas, and other essential services.
- Maintenance Routine upkeep and repairs to ensure the store remains in optimal condition.
- Supplies Expenses for packaging, cleaning products, and other consumables.
- Marketing Budget for local advertising, promotions, and brand-building activities.
- Royalty Fees Ongoing payments to Tous Les Jours based on a percentage of gross sales.
- Insurance Coverage for property, liability, and other necessary insurances.
- Technology Costs related to point-of-sale systems, software updates, and digital infrastructure.
Properly managing these operational costs is crucial for maintaining profitability and ensuring the long-term success of your Tous Les Jours franchise.
Tous Les Jours Franchise Fees
When opening a Tous Les Jours franchise, it’s important to be aware of the ongoing fees that will impact your financial planning. Here’s a summary of the key fees you should consider:
- Royalty Fees 5% of Gross Sales, with a reduced rate of 3% for outlets that were initially company or affiliate-owned and later converted to franchised outlets. These fees are paid weekly by electronic funds transfer, based on the previous week’s sales.
- Marketing Fees 2% of Gross Sales, also paid weekly by electronic funds transfer, due concurrently with the royalty fees. This fee supports brand promotion and marketing efforts.
- Supplemental and/or Additional Training Fee $350 per day for any extra training beyond the initial program, including training for replacement managers. This fee is payable upon scheduling the additional training.
- Additional Fees There may be other fees not listed here, such as costs for compliance, local regulations, or special assessments, so it’s wise to review the franchise agreement carefully for any potential extra costs.
Understanding and budgeting for these fees will help ensure smooth operations and financial preparedness for your Tous Les Jours franchise.
Tous Les Jours Franchise Earnings
Based on the 2023 gross sales of $1,782,000 for a Tous Les Jours franchise, the earnings for an owner-operator are projected to be around $214,000. This figure is for operating profits (EBITDA). For a semi-absentee owner, the estimated earnings Would be estimated to be a bit lower due to the need to hire a manager to run the operations day to day.
How to Open a Tous Les Jours Franchise
Becoming a Tous Les Jours franchisee involves several key steps, each designed to ensure that both the franchisee and the franchisor are aligned for a successful partnership. Here’s an overview of the process:
- Initial Inquiry Begin by submitting an inquiry through the Vetted Biz website or directly contacting a franchise specialist. This will provide you with initial information about the franchise opportunity and start the communication process.
- Pre-Qualification Complete a franchise application or pre-qualification form to assess your suitability as a franchisee. This includes providing details about your financial status, business experience, and personal background.
- Franchise Interview Attend an interview with the Tous Les Jours franchise team to discuss your application, business goals, and alignment with the franchise’s values and expectations.
- Site Selection and Approval Work with Tous Les Jours to select a suitable location for your franchise. The franchisor will evaluate and approve the site based on criteria such as market potential and suitability.
- Franchise Agreement Negotiate and sign the franchise agreement, which outlines the terms and conditions of your franchise relationship, including fees, obligations, and operational guidelines.
- Training and Setup Attend the required training program provided by Tous Les Jours. This will cover operational procedures, marketing strategies, and management techniques. Concurrently, begin setting up your store, including construction, equipment installation, and initial inventory procurement.
- Grand Opening Prepare for and execute the grand opening of your Tous Les Jours franchise. This includes finalizing staff hiring, conducting a soft launch, and executing marketing strategies to attract customers.
Pros & Cons
Pros
Strong Brand Recognition: Tous Les Jours has a well-established brand with a unique blend of French and Korean bakery products, which can attract a diverse customer base.
Distinctive Product Offering: Tous Les Jours’ unique blend of French and Korean bakery items sets it apart from competitors, appealing to a niche market with diverse tastes.
Impressive Growth Metrics: The franchise’s consistent increase in gross sales and earnings reflects strong financial health and a successful business model.
Cons
Intensive Management Requirements: Operating a bakery café involves managing multiple facets, including inventory, staff, and customer service, which can be demanding and time-consuming.
Competitive Bakery Market: The bakery and café industry is highly saturated, with many established brands and new entrants competing for market share
High Initial Investment: The significant upfront costs for initial investment and setup can be a barrier to entry for some potential franchisees.
