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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Peace, Love & Little 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 | $121,200 - $235,100 |
Franchise Fee | $35,000 | $40,000 |
Royalty Fee | 5% | 6% |
Advertising Fee | - | 1% |
Year Founded | 1973 | 2009 |
Year Franchised | 1986 | 2016 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | Net-worth Requirement $500,000 Liquid Cash Requirement $150,000 | |
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 | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | On-The-Job Training: 40 hours Classroom Training: 20 hours |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Purchasing Co-ops Newsletter Meetings/Conventions 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 Social media 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) | - |
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.