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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Cupcakes 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 | $267,500 - $381,000 |
Franchise Fee | $35,000 | $50,000 |
Royalty Fee | 5% | - |
Advertising Fee | - | - |
Year Founded | 1973 | 2002 |
Year Franchised | 1986 | 2008 |
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 | 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.
Cupcakes is the original cupcakes bakery. Cupcakes has been baking fresh daily, cupcakes, cakes and other baked goods, since 2002. In only 6 years, Cupcakes by Heather & Lori has become a leader in the cupcakes retail bakery industry. Cupcakes is now seeking strong potential candidates for franchise and area development for national and USA expansion. The objective is to establish Cupcakes Bakeries in strategically chosen urban markets throughout North America and beyond.