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Below is an in-depth analysis and side-by-side comparison of Jerry's Subs & Pizza vs Erik's DeliCafe including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $250,000 - $350,000 | $303,500 - $521,600 |
Franchise Fee | $25,000 | $35,000 |
Royalty Fee | 6% | 5% |
Advertising Fee | - | - |
Year Founded | 1954 | 1973 |
Year Franchised | 1980 | 1986 |
Term Of Agreement | 20 years | 10 years |
Term Of Agreement | 20 years | 10 years |
Renewal Fee | $25K | - |
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 | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | No/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations |
Marketing | Co-op advertising | Co-op advertising, Ad slicks |
Operations |
Absentee ownership of franchise is allowed. (95% 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 |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | No | No |
The first Jerry's Subs opened in Wheaton, Maryland, in 1954, selling over-stuffed submarine sandwiches and New York-style pizza. Since it started franchising in 1980, the company has grown to include locations along the East Coast, as well as in the Caribbean and Central America.
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.