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Updated RecentlyErik's DeliCafe vs Cheba Hut Toasted Subs Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Cheba Hut Toasted Subs 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 | $575,900 - $939,700 |
| Franchise Fee | $35,000 | $40,000 |
| Royalty Fee | 5% | 6% |
| Advertising Fee | - | 2% |
| Year Founded | 1973 | 1998 |
| Year Franchised | 1986 | 2002 |
| Term Of Agreement | 10 years | - |
| Term Of Agreement | 10 years | - |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | For candidates applying for a single unit agreement, you should have a credit score of 700+, liquid capital of $200,000 or more and a net worth of over $350,000. For candidates applying for multiple units, the requirements in terms of both professional backgrounds, skill sets are determined on a case-by-case basis. Candidates with strong credit are often suitable for SBA or traditional business loans that can cover up to 75% of the overall investment. Cheba Hut has relationships with lendors in the franchise space and will make the appropriate introductions during the Education Process. | |
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: 84 hours Classroom Training: 84 hours |
| Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
| Marketing | Co-op advertising, Ad slicks | Ad Templates Social media SEO Website development |
| 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) | Absentee Ownership Allowed Number of Employees Required to Run: 15 - 20 |
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 Cheba Hut Toasted Subs