Erbert & Gerbert's Subs & Clubs vs McDonald's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Erbert & Gerbert's Subs & Clubs vs McDonald's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Erbert & Gerbert's Subs & Clubs Franchise
McDonald's Franchise
Investment $191,014 - $397,535$1,314,500 - $2,306,500
Franchise Fee $30,000$45,000
Royalty Fee 6%4%
Advertising Fee 2%4%+
Year Founded 19871955
Year Franchised 19921955
Term Of Agreement 10 years20 years
Term Of Agreement 10 years20 years
Renewal Fee -$45K


Business Experience Requirements
 
Erbert & Gerbert's Subs & Clubs Franchise
McDonald's Franchise
Experience

Attitude determines your altitude in life and in Franchising as well.

You need a willingness to work hard, some business acumen and you have to enjoy working with people.


  • Industry experience
  • General business experience
  • Marketing skills
    		•

    Financing Options
     
    Erbert & Gerbert's Subs & Clubs Franchise
    McDonald's Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/Yes
    Inventory No/YesNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    Erbert & Gerbert's Subs & Clubs Franchise
    McDonald's Franchise
    Training

    We provide training to cover every aspect of your shop. This includes food prep, guest service, staff relations, business management - basically everything you need to open an E&G. On-The-Job Training: 112 hours Classroom Training: 35 hours Additional Training: At corporate restaurant

    		On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media Email marketing Loyalty program/app Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations

    Number of employees needed to run franchised unit: 20-30

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    		 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Erbert & Gerbert's Subs & Clubs Franchise
    McDonald's Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    About Erbert & Gerbert's Subs & Clubs

    Erbert & Gerbert's Sandwich Shop is a quick service restaurant serving up the best sandwiches on the planet. In a complicated and fast-paced world, our operation is simple, proven, efficient and easily trainable. We are a franchise you can be proud to operate. Our uniquely flavorful sandwiches are unequaled in quality, freshness and consistency. Our unique and engaging brand is growing strong and seeking ambitious, talented and committed individuals experienced in business or restaurant management who are ready to develop their future with a proven and established system.

     What's Special About Erbert & Gerbert's?     
    -Unique Story Line with Core Values Relevant for today's fast casual sandwich sector customers
    -Best in Class Food with bold flavors differentiating our products
    -Best Practices Operations with simple, easy to train methods
    -Delivery & Catering Systems trained and reinforced in Operations
    -Unparalleled Product Development keeping us at the forefront of menu innovation
    -Preferred Lender Network for your financing
    -Year after Year of Positive Same Store Sales Growth
    -High Gross Revenue to capitalized cost ratio

    -Unit economics showing industry leading EBITDA

    The total investment necessary to begin operation of an Erbert & Gerbert's in a Traditional Location is from $194,820 to $393,270. This includes $32,500 to $35,000 that must be paid to the franchisor or its affiliates.
    The total investment necessary to begin operation of an Erbert & Gerbert's Restaurant in a Non-Traditional Location is from $38,500 to $196,750. This includes $6,250 to $10,750 that must be paid to the franchisor or affiliate.
    If you sign an Area Development Agreement, you will pay the franchisor a nonrefundable Territory Fee of $10,000 times the number of restaurants you agree to develop. The franchisor will apply the $10,000 payment against future Initial Franchise Fees for your Erbert & Gerbert's Restaurants that you develop under the Area Development Agreement.

    Seeking new franchise units in Iowa, Illinois, Indiana, Michigan, Minnesota, North Dakota, South Dakota and Wisconsin  
    Veteran Incentives  $5,000 off franchise fee





    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


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