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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Jon Smith Subs 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 | $309,500 - $887,760 |
Franchise Fee | $35,000 | $39,500 |
Royalty Fee | 5% | 6% |
Advertising Fee | - | 3% |
Year Founded | 1973 | 1988 |
Year Franchised | 1986 | 2007 |
Term Of Agreement | 10 years | 20 years |
Term Of Agreement | 10 years | 20 years |
Renewal Fee | - | $1K |
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 | -/Yes |
Start-up Costs | No/No | -/Yes |
Equipment | No/No | -/Yes |
Inventory | No/No | -/Yes |
Receivables | No/No | -/Yes |
Payroll | No/No | -/Yes |
Training & Support |
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Training | - | On-The-Job Training: 80 hours Classroom Training: 80 hours Additional Training: At existing store |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Co-op advertising, Ad slicks | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
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) | Absentee Ownership Allowed Number of Employees Required to Run: 15 - 20 |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | 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.