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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Donut King 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 | $295,000 - $340,000 |
Franchise Fee | $35,000 | $55,000 |
Royalty Fee | 5% | 7% |
Advertising Fee | - | 3% |
Year Founded | 1973 | - |
Year Franchised | 1986 | - |
Term Of Agreement | 10 years | - |
Term Of Agreement | 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 | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | - |
Marketing | Co-op advertising, Ad slicks | - |
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 | - |
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.
During the past three decades, Donut King has evolved into Australia’s largest specialty donut and coffee destination, with more than 330 outlets across Australia, New Zealand, China, Papua New Guinea and the Kingdom of Saudi Arabia. Apart from its world-famous DK Cinnamon Donuts, Donut King also treats customers of all ages to 'original' and 'classic' donut ranges, milkshakes; Quake Shakes®, frozen beverages, hot dogs, ice creams, toasts, and its very own blend of espresso coffee, Royal Bean. We offer a large range of store types ranging from a drive thru operation to a full format inline cafe or kiosk with seating.