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Updated RecentlyErik's DeliCafe vs Melt Shop Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Melt Shop 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 | $368,240 - $698,800 |
| Franchise Fee | $35,000 | $35,000 |
| Royalty Fee | 5% | 6% |
| Advertising Fee | - | 2% |
| Year Founded | 1973 | 2010 |
| Year Franchised | 1986 | 2017 |
| Term Of Agreement | 10 years | 5 Years +5+5+5 |
| Term Of Agreement | 10 years | 5 Years +5+5+5 |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | Melt Shop is seeking well capitalized partners who are entrepreneurial and have a strong knowledge of their market. The ideal franchisee is a proven multi-unit operator in the restaurant industry. At this time we are not offering sub-franchises. | |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | -/Yes |
| 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 | - | On-The-Job Training: 224 hours Classroom Training: 24 hours |
| Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
| Marketing | Co-op advertising, Ad slicks | Co-op Advertising Ad Templates Regional Advertising Social media 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: 15 |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | - |
| International Expansion | No | Yes |
Company Overviews
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.