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Below is an in-depth analysis and side-by-side comparison of Sub Station II vs Erik's DeliCafe including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $188,500 - $357,000 | $303,500 - $521,600 |
Franchise Fee | $20,000 | $35,000 |
Royalty Fee | 4% | 5% |
Advertising Fee | - | - |
Year Founded | 1975 | 1973 |
Year Franchised | 1976 | 1986 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | No/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations |
Marketing | Co-op advertising, Ad slicks, Regional advertising | Co-op advertising, Ad slicks |
Operations |
25% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8 Absentee ownership of franchise is allowed. (85% of current franchisees are owner/operators) |
78% of all franchisees own more than one unit Number of employees needed to run franchised unit: 16 Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | No | No |
After receiving his bachelor's degree in business and marketing, Erik Johnson tried his hand at accounting, security, food service and real estate before purchasing a 600-square-foot store in Scotts Valley, California, back in 1973. With help from his family, Johnson founded Erik's Deli Cafe, a quick-service and catering restaurant that served sandwiches, salads, soups and baked goods.
Johnson expanded his chain throughout Northern California before selling the first franchise in 1986.