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Updated RecentlyErik's DeliCafe vs Factory Donuts Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Factory Donuts 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 | $213,300 - $341,300 |
| Franchise Fee | $35,000 | $20,000 |
| Royalty Fee | 5% | 5% |
| Advertising Fee | - | 2.5% |
| Year Founded | 1973 | 2017 |
| Year Franchised | 1986 | 2017 |
| Term Of Agreement | 10 years | 10 years +10 |
| Term Of Agreement | 10 years | 10 years +10 |
| 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) | Most Factory Donuts will employ 10-20 employees |
Expansion Plans |
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| US Expansion | Yes | 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 Factory Donuts
Factory Donuts is more than just a business of making great tasting donuts and coffee. It’s a culture. At Factory Donuts you will be part of a family; whether it’s as an employee or as a franchise partner. The founders' background and their beliefs for a well operated, highly efficient, and value oriented business strategy make Factory Donuts a stand out business model that others strive to be.
The business model at Factory Donuts is about simplicity and efficiency. Donuts are a billion dollar industry and growing. The idea of a fresh, made to order donut along with premium coffee drinks is a segment that Factory Donuts will fill.