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Below is an in-depth analysis and side-by-side comparison of Cinnzeo 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 | $214,000 - $621,000 | $303,500 - $521,600 |
Franchise Fee | $15,000 | $35,000 |
Royalty Fee | 7% | 5% |
Advertising Fee | - | - |
Year Founded | 1987 | 1973 |
Year Franchised | 1998 | 1986 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | $4K | - |
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/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/No | 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, Toll-free phone line, 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 |
Operations |
Number of employees needed to run franchised unit: 2 - 6
Absentee ownership of franchise is allowed. |
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 | Yes | No |
The founders of Cinnzeo got their start as franchisees for another cinnamon roll company in 1987. In the next 10 years, they opened 20 stores in Western Canada, but grew unhappy with the direction the company was aking. In 1997, the franchisees decided not to renew their contract and instead opened their own company. By 2000 Cinnzeo, now led by president Brian R. Latham, had grown from those original 20 stores to 64, expanding into the Philippines and parts of Southeast Asia.
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.