Subway vs Erik's DeliCafe Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Subway vs Erik's DeliCafe including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Subway Franchise
Erik's DeliCafe Franchise
Investment $139,550 - $342,400$303,500 - $521,600
Franchise Fee $15,000$35,000
Royalty Fee 8%5%
Advertising Fee 4.5%-
Year Founded 19651973
Year Franchised 19741986
Term Of Agreement 20 years10 years
Term Of Agreement 20 years10 years
Renewal Fee none-


Business Experience Requirements
 
Subway Franchise
Erik's DeliCafe Franchise
Experience
  • General business experience

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    Subway Franchise
    Erik's DeliCafe Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees Yes/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment Yes/YesNo/No
    Inventory No/YesNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    Subway Franchise
    Erik's DeliCafe Franchise
    Training On-The-Job Training: 33 hours Classroom Training: 62 hours Additional Training: Training available in Australia, China, Germany, India, Montreal, Canada & Miami -
    Support Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet PlatformNewsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/appCo-op advertising, Ad slicks
    Operations 65% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 8-12

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

    		 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
     
    Subway Franchise
    Erik's DeliCafe Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About Subway

    In 1965, 17-year-old Fred DeLuca and family companion Peter Buck opened Pete's Super Submarines in Bridgeport, Connecticut. With a credit from Buck for just $1,000, DeLuca trusted the modest sandwich shop would procure enough to put him through school. In the wake of battling through the initial couple of years, the organizers changed the organization's name to Subway and started diversifying in 1974. Offering a new, solid contrasting option to fast-food eateries, Subway has establishments all through the United States and in a few nations, with areas in customary and nontraditional locales alike.

    In contrast with different rivals in the fast food industry, where franchisees need to pay millions, - for example, McDonald's ($1-2 million) and KFC ($1.3-2.5 million), investors in Subway need to pay just a portion of that.

    The total investment is an estimated $150,050 - $328,700 in the United States and $102,000 to $234,000 in Canada.

    Veteran Incentives  Franchise fee waived if opening on a military/government location; 50% off franchise fee if opening on non-government location but receiving government financing
    "Top    ""
    #2 on Canada's top franchises 2020.
    #107 in Franchise 500 for 2020.







    About Erik's DeliCafe

    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.