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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Sandwich Tree Restaurants 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 | $90,000 - $120,000 |
Franchise Fee | $35,000 | $10,000 - $17,500 |
Royalty Fee | 5% | 5% |
Advertising Fee | - | 3% |
Year Founded | 1973 | 1978 |
Year Franchised | 1986 | 1979 |
Term Of Agreement | 10 years | 5 years +5 |
Term Of Agreement | 10 years | 5 years +5 |
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 | - | Headquarters 2 Weeks |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Central Data Processing: At Additional Cost Central Purchasing Field Operation Evaluation Field Training Initial Store Opening Inventory Control Franchisee Newsletter Regional or National Meetings 800 Telephone Hotline |
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) | Average Number of Employees: 4 Full-time, 7 Part-time Passive Ownership: Allowed, But Discouraged |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | Yes |
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.
The challenges and rewards of operating your own business are like no other. Franchising will not reduce the fear of taking the next step into operating a business. It will not reduce the time and effort necessary to create success. What franchising offers is a business format that allows you to capitalize on the results of others. It affords the opportunity to be fully equipped to launch and grow within a proven concept. Sandwich tree provides a full service of tools, training, and support to compliment your efforts. The level of independence and success you achieve will be up to you. The benefits associated with Sandwich Tree and the information needed to make an informed decision about your business future are available for the asking. For further information, simply call 604-220-4566