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Below is an in-depth analysis and side-by-side comparison of Baker Bros. American Deli vs Groucho's Deli including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $430,500 - $656,000 | $82,548 - $380,768 |
Franchise Fee | $25,000 | $18,000 - $28,000 |
Royalty Fee | 4% | 5% |
Advertising Fee | - | - |
Year Founded | 1998 | 1941 |
Year Franchised | 2000 | 2001 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | $5K | - |
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/Yes | No/No |
Receivables | No/Yes | No/No |
Payroll | No/Yes | No/No |
Training & Support |
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Training | - | - |
Support | Meetings, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Ad slicks, Regional advertising | Co-op advertising, Regional advertising |
Operations |
International franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 15 - 18
Absentee ownership of franchise is allowed. |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 13 Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | No |
International Expansion | No | No |
The Baker Bros believe that they have one of the most franchisee-friendly programs in their industry. Baker Bros is franchised through an Area Development Agreement that generally requires a 2 to 5 store minimum for individual franchisees. The Area Development Agreement covers an exact geographical area, franchise terms and conditions, number of units to be opened under the agreement and other details of the franchise program. Baker Bros offers an extensive Franchise Support Program. Tom and Ken are always available to assist you and to answer any questions that you might have. In addition, one of our Franchise Advisors will come to your store periodically to provide personal assistance from Baker Bros. Whatever you might need, there will always be a person at Baker Bros who can help you.
Harold "Groucho" Miller came to Columbia, S.C. in 1941 with a handful of original recipes for potato salad, coleslaw, and various salad and sandwich dressings, most of which were thought up during his childhood in a Philadelphia orphanage. These humble beginnings along with the idea that, "quality is the most important ingredient in a sandwich," have led Groucho's to legendary restaurant status for 80 years.