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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Jimmy John's Gourmet Sandwich Shops 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 | $313,600 - $556,100 |
Franchise Fee | $35,000 | $35,000 |
Royalty Fee | 5% | 6% |
Advertising Fee | - | 4.5% |
Year Founded | 1973 | 1983 |
Year Franchised | 1986 | 1993 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | - | $2.5K |
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/Yes |
Start-up Costs | No/No | No/Yes |
Equipment | No/No | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations |
Marketing | Co-op advertising, Ad slicks | Co-op advertising, Ad slicks, Regional advertising |
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 | No |
International Expansion | No | 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.
James J. Liautaud established Jimmy John's in Charleston, Illinois, in 1983 when he was 19 years of age. With utilized hardware, a cooler, one meat slicer, a cooler and a stove, Jimmy John Liautaud began his business without even a posted menu or an open air sign. At the time, he offered four sandwich assortments and 25-penny sodas. In the wake of going out sandwich tests all through the school town, Liautuad included conveyance benefit, tables, open air signs, menu sheets and an extended menu. He opened a few more stores and built up a model before diversifying started in 1993. Jimmy John's franchisees prepare bread at every store each day, and each sandwich is made new to arrange in 30 seconds.