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Below is an in-depth analysis and side-by-side comparison of Baker Bros. American Deli vs Cheba Hut Toasted 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 | $430,500 - $656,000 | $575,900 - $939,700 |
Franchise Fee | $25,000 | $40,000 |
Royalty Fee | 4% | 6% |
Advertising Fee | - | 2% |
Year Founded | 1998 | 1998 |
Year Franchised | 2000 | 2002 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | $5K | - |
Business Experience Requirements |
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Experience | For candidates applying for a single unit agreement, you should have a credit score of 700+, liquid capital of $200,000 or more and a net worth of over $350,000. For candidates applying for multiple units, the requirements in terms of both professional backgrounds, skill sets are determined on a case-by-case basis. Candidates with strong credit are often suitable for SBA or traditional business loans that can cover up to 75% of the overall investment. Cheba Hut has relationships with lendors in the franchise space and will make the appropriate introductions during the Education Process. | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | -/Yes |
Start-up Costs | No/Yes | -/Yes |
Equipment | No/Yes | -/Yes |
Inventory | No/Yes | -/Yes |
Receivables | No/Yes | -/Yes |
Payroll | No/Yes | -/Yes |
Training & Support |
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Training | - | On-The-Job Training: 84 hours Classroom Training: 84 hours |
Support | Meetings, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Ad slicks, Regional advertising | Ad Templates Social media SEO Website development |
Operations |
International franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 15 - 18
Absentee ownership of franchise is allowed. | Absentee Ownership Allowed Number of Employees Required to Run: 15 - 20 |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | - |
International Expansion | No | - |
The Baker Bros believe that they have one of the most franchisee-friendly programs in their industry. Baker Bros is franchised through an Area Development Agreement that generally requires a 2 to 5 store minimum for individual franchisees. The Area Development Agreement covers an exact geographical area, franchise terms and conditions, number of units to be opened under the agreement and other details of the franchise program. Baker Bros offers an extensive Franchise Support Program. Tom and Ken are always available to assist you and to answer any questions that you might have. In addition, one of our Franchise Advisors will come to your store periodically to provide personal assistance from Baker Bros. Whatever you might need, there will always be a person at Baker Bros who can help you.