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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Togo's Eateries, LLC 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 | $240,500 - $545,700 |
Franchise Fee | $35,000 | $30,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | - | 3% |
Year Founded | 1973 | 1971 |
Year Franchised | 1986 | 1977 |
Term Of Agreement | 10 years | 10 years, renewable |
Term Of Agreement | 10 years | 10 years, renewable |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | We're looking for franchisees with an entrepreneurial spirit and the willingness to work hard. Franchisees invest in us because they know how great our sandwiches are and how much our loyal guests love them. To invest in our great organization, a single restaurant development requires $150,000 in liquid assets and a net worth of $300,000. Three or more restaurant developments require $450,000 in liquid assets and a net worth of $900,000. | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/No |
Start-up Costs | No/No | -/Yes |
Equipment | No/No | -/Yes |
Inventory | No/No | -/Yes |
Receivables | No/No | -/Yes |
Payroll | No/No | -/Yes |
Training & Support |
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Training | - | As Togo's sandwich franchise owner, you and/or your designated manager will be enrolled in an extensive training program that covers all aspects of restaurant operations - running and marketing the business. The training includes eight hours of food safety certification; a week of classroom training at our headquarters in San Jose, which covers business operations, bookkeeping, marketing, and systems for overseeing and managing your business; three weeks of on-the-job operations training at a Togo's restaurant, learning to make sandwiches, manage inventory, and use the point of sale system. On-The-Job Training: 120 hours Classroom Training: 24 hours |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Our ongoing support sets Togo's apart. We group our restaurants into three districts: Northern California, Southern California, and New and Emerging Markets. Each group is overseen by a Vice President of Franchise Operations, who manages a team of Franchise Business Consultants. The Franchise Business Consultants help franchisees track key performance indicators, solve operational challenges, and boost performance. We also provide support with: Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Co-op advertising, Ad slicks | Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
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) | Number of Employees Required to Run: 14 - 25 |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | - |
International Expansion | 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.