Erik's DeliCafe vs The Submarine Station Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs The Submarine Station including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
Erik's DeliCafe Franchise
The Submarine Station Franchise
Investment $303,500 - $521,600N/A
Franchise Fee $35,000$8,000
Royalty Fee 5%$500/mo
Advertising Fee --
Year Founded 1973-
Year Franchised 1986-
Term Of Agreement 10 years5 years
Term Of Agreement 10 years5 years
Renewal Fee --


Business Experience Requirements

 
Erik's DeliCafe Franchise
The Submarine Station Franchise
Experience
  • Industry experience
  • General business experience
  • -

    Financing Options

     
    Erik's DeliCafe Franchise
    The Submarine Station Franchise
      In-House/3rd PartyIn-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

     
    Erik's DeliCafe Franchise
    The Submarine Station Franchise
    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

     
    Erik's DeliCafe Franchise
    The Submarine Station Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion No-

    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.

    About The Submarine Station

    As a company grows there are three main methods of growth to choose from: sole proprietorship, joint venture, or franchising. The franchise system is an exciting model because of the common shared interest in the founding company (the Franchisor) and the small business owner (the Franchisee) that both want the system to work. The problem with most franchising models is that a Franchisee is under such stringent restrictions from the Franchisor. Understandably, the Franchisor has a huge interest in protecting the brand. This interest in protecting the brand has inherent drawbacks that now become the Franchisee's issues. A few of these drawbacks are: real estate long-term leasing or purchasing, expensive proprietary equipment, forced product price points, etc. Who pays for this in the end? Well, the Franchisee does. Who looks out for the Franchisee? The Submarine Station will!