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Below is an in-depth analysis and side-by-side comparison of Baker Bros. American Deli vs Russo's New York Pizzeria 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 | $400,000 - $1,500,000 |
Franchise Fee | $25,000 | $49,500 |
Royalty Fee | 4% | 7% |
Advertising Fee | - | 2% |
Year Founded | 1998 | 1978 |
Year Franchised | 2000 | 1998 |
Term Of Agreement | 10 years | 10 years +5 |
Term Of Agreement | 10 years | 10 years +5 |
Renewal Fee | $5K | - |
Business Experience Requirements |
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Experience | No Restaurant experience necessary but helpful Minimum financials are $175K to $400K in investment capital and a $600K to $1.0MM net worth. | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/Yes | -/- |
Receivables | No/Yes | -/- |
Payroll | No/Yes | -/- |
Training & Support |
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Training | - | Corporate Store, Houston, TX . 8 Week GM & Key Supervisor Training and Certification. |
Support | Meetings, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Central Data Processing: At Additional Cost
Field Operation Evaluation: At Additional Cost Field Training: At Additional Cost Initial Store Opening Inventory Control Regional or National Meetings 800 Telephone Hotline |
Marketing | Ad slicks, 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. | Average Number of Employees: 10 Full-time, 6 Part-time Passive Ownership: Allowed, But Discouraged |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | - |
International Expansion | No | Yes |
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.
Russo's Restaurants is a national and international franchisor of the fast casual and casual dining brands Russo's New York Pizzeria and Russo's Coal-Fired Italian Kitchen. Based in Houston, Russo's Restaurants are composed of a mix of corporate and franchised locations across Texas, Oklahoma, Arkansas, Tennessee, Florida and Hawaii. Russo's has entered international markets as well, with locations in Dubai, Abu Dhabi and Sharjah in the United Arab Emirates. There are an additional 20-plus units in development both in the United States and internationally. Chef Anthony Russo has created his concepts from years of applying his unique, family recipes featuring New York-style pizza along with a broad variety of handcrafted pasta creations, calzones, salads, sandwiches, soups and desserts, reflecting his commitment to his New York roots where food and family come first.