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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Treats 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 | $121,000 - $260,000 |
Franchise Fee | $35,000 | $25,000 |
Royalty Fee | 5% | 7% |
Advertising Fee | - | 1% |
Year Founded | 1973 | 1977 |
Year Franchised | 1986 | 1979 |
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 | - | 1. Training Center 2 Weeks 2. On-Site |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Central Purchasing Field Operation Evaluation Field Training Initial Store Opening 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: 3 Full-time, 2 Part-time Passive Ownership: Allowed, But Discouraged |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | - |
International Expansion | No | Yes |
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.
Micro-bakery concept, featuring gourmet and specialty coffees and fresh-baked, on-site baked goods, including muffins, cookies and bagels. Three concept variations are available: TREATS BAKERY (~400 SF) serves the base menu offering; TREATS CAFE (~1,200 SF) also serves sandwiches (baguettes), soups and salads; TREATS COFFEE EMPORIUM (~1,200 SF) also offers coffee beans, coffee-related merchandise and sandwiches.