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Updated RecentlyLaMar's Donuts vs Erik's DeliCafe Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of LaMar's Donuts 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 | $288,500 - $366,500 | $303,500 - $521,600 |
| Franchise Fee | $28,500 | $35,000 |
| Royalty Fee | 5% | 5% |
| Advertising Fee | - | - |
| Year Founded | 1960 | 1973 |
| Year Franchised | 1993 | 1986 |
| Term Of Agreement | 10 years | 10 years |
| Term Of Agreement | 10 years | 10 years |
| Renewal Fee | - | - |
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/No | No/No |
| Equipment | No/No | No/No |
| Inventory | No/No | No/No |
| Receivables | No/No | No/No |
| Payroll | No/No | No/No |
Training & Support |
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| Training | As needed | - |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations |
| Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | Co-op advertising, Ad slicks |
| Operations |
Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (75% 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 |
| Canada Expansion | No | No |
| International Expansion | No | No |
Company Overviews
About LaMar's Donuts
Ray Lamar found his way into the donut business at the age of 17, working as a fryer at a Kansas City, Missouri, shop. Lamar made his way up to being a partner in the company, but World War II cut the partnership short. Upon his return, Lamar earned a degree in economics and began a career as a stockbroker, but donuts remained the business he truly loved.
In 1960, nearly 30 years after first manning the fryer, Lamar opened his first LaMar's Donuts shop in Kansas City. The company began franchising in 1993 and is now based in Englewood, Colorado.
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.