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Below is an in-depth analysis and side-by-side comparison of Atlantic City Sub Shops 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 | $100,000 - $275,000 | $303,500 - $521,600 |
Franchise Fee | $15,000 | $35,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | - | - |
Year Founded | 1986 | 1973 |
Year Franchised | 1995 | 1986 |
Term Of Agreement | 3 years | 10 years |
Term Of Agreement | 3 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/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 | Available at headquarters, Available at franchisee's location | - |
Support | Grand opening, Internet, Field operations/evaluations | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations |
Marketing | Ad slicks | Co-op advertising, Ad slicks |
Operations |
0% of all franchisees own more than one unit Number of employees needed to run franchised unit: 13 - 15
Absentee ownership of franchise is NOT allowed. (100% 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 |
Brett Perlman, Scott Perlman and Santo Formica founded Atlantic City Sub Shops in 1986, opening their first store in Egg Harbor Township, New Jersey, just west of the shoreline destination. From that location, the partners began serving submarine sandwiches for customers who would eat in, take out or order delivery.
The company overnights sandwiches made in the Egg Harbor store to customers who don't have an Atlantic City Sub Shop location near them.
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.