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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Honey Dew Donuts including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $303,500 - $521,600 | $125,000 - $400,000 |
Franchise Fee | $35,000 | $35,000 |
Royalty Fee | 5% | - |
Advertising Fee | - | - |
Year Founded | 1973 | 1973 |
Year Franchised | 1986 | 1974 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 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 | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | - |
Marketing | Co-op advertising, Ad slicks | - |
Operations |
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 | - |
Canada Expansion | No | - |
International Expansion | 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.
Dick Bowen, founder and president of Honey Dew Associates, Inc. always had a passion and taste for donuts. As a kid, he followed his dad to work at a local donut shop in West Roxbury, Massachusetts. Throughout high school he worked at several coffee and donut shops, dreaming of the day he would own his own where the local community could gather to "enjoy the local flavor."
In 1973, Dick's dream came true when he opened the first Honey Dew Donuts shop in downtown Mansfield, Massachusetts. He quickly became a local favorite, offering a friendly smile and the finest donuts and coffee around. He lived the promise "Always Fresh, Always Good" and his customers responded by coming over and over again.
Building a chain of coffee and donut shops was never a part of Dick's plan. A customer suggested bringing Honey Dew Donuts to his own local community, and in 1975, this customer became the first franchisee. Three years later Dick introduced the drive-thru concept to New England when he installed one in the Plainville, Massachusetts shop.
Over time, as the chain expanded with more franchisees and more shops, so did the menu to include mouth-watering muffins, pastries, bagels, breakfast sandwiches, gourmet flavored coffees, and frozen beverages. Today, Dick heads a thriving franchise organization that, more than 30 years after the first shop in Mansfield opened, includes over 150 shops sprinkled throughout New England. Dick is now President of Honey Dew Associates and our Franchisees follow Dick's example and are local favorites in their own communities. In fact, many of them get to know their customers so well; they can fill orders as soon as they see their cars enter the parking lot!
Honey Dew Donuts is a New England based coffee and bakery Franchise Company with over 150 locations throughout the Northeast. We are currently seeking individuals, and couples to join our 35-year young brand.