Tom And Chee Franchise – How to Open, Cost & Profit

Tom And Chee Franchise Startup Cost, Profit & Opportunities

Tom and Chee specialize in grilled cheese and tomato soup, catering not only to the need of families but also offering franchising opportunities for investment. This franchise was founded in 2009. However, it wasn’t until 2012 (3 years later) that it began franchising.

Today, Tom and Chee’s franchise is looking for franchising partners to open franchise units across the United States.

Is this the right franchise for you? Do you think you’ve got what it takes? Read on to find more information.

Why Tom And Chee Franchise?

Before deciding on a franchise opportunity, important questions need to be raised and answered. And so we ask; why join the Tom and Chee franchise? No single answer will suffice.

However, we’ll be as brief as possible to provide answers. Tom and Chee have created a strong brand for itself. Its appearance on the business reality shows Shark Tank has made it one of the most recognizable restaurant brands.

Also, Tom and Chee have created a business model which as made it increasingly easier for prospective franchisees to join its fold. Plus, innovation has been its watchword in creating an exciting menu known for its uniqueness. The best part of all has to do with its low-cost investment.

With a limited investment, you stand to earn huge profits by simply following its (the franchisor’s) lead.

Startup Costs

One of the most immediate requirements prospective franchisees need to know about is the startup costs. These are varied and include a wide range of other costs. The following are the costs you’re likely to incur when starting a Tom and Chee franchise;

The initial franchise fee starts at $5,000 to $30,000 based on the size of your franchise and territory. The initial franchise fee is paid at the signing of the agreement. There are also leasing, real property, and site work costs.

Furniture, fixtures & equipment will cost between $90 to $120,000. You’ll also be incurring a building, construction & leasehold improvement costs ranging from $145,000 to $175,000

Utility deposits range from $500 to $1,500. Prospective franchisees get to foot the bill for architectural & engineering fees from $7,000 to $15,000. An initial inventory fee has a lower and upper limit of $4,000 and $8,000 respectively. Prospective franchisees are required to meet up their insurance obligations within the $2,000 to $4,000 range.

Signs and awning will range between $6,000 to $18,000, training will cost the prospective franchisee anywhere between $15,000 to $25,000. Licensing and permit costs fall within $1,500 to $4,000, legal & accounting costs at $1,500 to $3,000 and office equipment & supplies will range from $200 to $500

What more? There are additional costs from hardware & software (computer) equipment. This will cost you anywhere between $7,000 to $15,000. A grand opening advertising will cost the franchisor $5,000, plus, you’ll need to have 3 months of additional funds. This will be used as running costs and ranges between $10,000 to $25,000.


It is necessary to state that the above startup costs exclude those for site improvements land. This is the cost for an average-sized Tom and Chee outlet of about 1,400 to 1,800 square feet. Having said that, you should expect your startup costs to vary depending on multiple factors.

These include the real estate market value in your city, location, and size among other things. Ongoing fees include royalty and ad royalty fees of 6 & 1.5% respectively.

Financing Options

Tom and Chee offer franchisees financing options to help them meet their financial obligations much more conveniently. The franchisor’s relationship with third-party financing sources has created an opportunity where its financing partner(s) covers the cost of equipment.


The Tom and Chee franchise wants its franchisees to succeed. As such, it offers comprehensive support services that cover a wide range of areas. These areas can be categorized into three and include ongoing support, marketing support, and training. We’ll briefly explain each of these for better understanding.

  • Ongoing Support

Tom and Chee’s franchise offers its franchisees access to its purchasing cooperatives. This helps aggregate demand among franchisees which in turn makes it possible to get lower prices from selected suppliers. franchisees also benefit from periodic newsletter releases as well as attending meetings and conventions.

Tom and Chee organize a grand opening ceremony for new franchisees in addition to providing support for field operations.

  • Marketing Support

This franchisor provides marketing support that includes national media advertising in addition to the provision of ad templates for use by franchisees.

  • Training

After signing the franchise agreement, the next phase involves training. Tom and Chee provide all the training required. This is offered in two phases. The first involves onsite training lasting for 16 days. The second is held at its corporate headquarters and lasts for 21 days.

Getting Started

To get started, you’ll need to visit Tom and Chee’s online application page. Here, there’s a detailed online form that needs to be filled carefully. Do not rush through the process. Rather, take your time to fill out this form. It is common to encounter difficulties or not get exactly what a question is trying to ask. In such situations, seek help.

After filling and submitting the online application form, a representative from Tom and Chee contacts you for further discussion. A lot of questions are asked to determine if you’re the right fit for the franchise. After discussion, you’re invited for a physical meeting if it’s felt that you are qualified enough.

The franchise disclosure document will be handed to you. This document contains just about every piece of information regarding this franchise opportunity. You’re expected to read through this document to find out if the terms stated within the document are acceptable.

At this point, we always advise you to seek legal help because the document is riddled with legal terminology.

The Tom and Chee franchise opportunity are fast-growing with immense potential to become a major player in the not-too-distant future. The Tom and Chee franchise holds a lot of promise and should be explored.