6/10

Franchimp Summary Rating

7 /10
Earnings Transparency
4 /10
Investment Accessibility
Higher than 66% of peers

Franchise Summary

Description
The franchise is for a retail food establishment (a "DeliCafe") under the name “Erik’s DeliCafe” offering a variety of delicatessen style food in a cafe-style, relaxing atmosphere.
Company Background
Erik's DeliCafe is a franchise retail food establishment offering a variety of delicatessen-style food and macafe-style, relaxing atmosphere. Erik's DeliCafe was founded in 2001 by Erik Kullman who wanted to share his love for European delis with the rest of the world. The company has been growing ever since and now has over 100 locations worldwide!
Franchise Opportunity
Erik's DeliCafe is looking for a professional and polished tone of voice to match their high-quality food. Erik's DeliCafe offers a wide variety of delicious and fresh food, but can be hard to find the right words to describe it all. Erik's DeliCafe strives for excellence in both their food and their customer service. They offer a relaxed and comfortable atmosphere for you to enjoy your meal.
Corporate Structure
The Franchisor, Erik’s DeliCafe Franchises, Inc., is a California corporation that was incorporated on March 5, 1986 to offer franchises for operating Erik’s DeliCafes. We do not have a parent or predecessor. The Franchisor does business under the name “Erik’s DeliCafe.” The founder of the Erik’s DeliCafe concept is Mr. Erik R. Johnson. Mr. Johnson owned and operated the first Erik’s DeliCafe that opened in 1973 in Scotts Valley, California. Beginning with a single 600 square foot deli, Mr. Johnson built and guided his sole proprietorship into a corporation that was formed on August 12, 1977 under the name “Erik’s Deli, Inc.” for purposes of operating company owned Erik’s DeliCafes (the “Affiliate”). The Affiliate changed its name from “Erik’s Deli, Inc.” to “Erik’s DeliCafe, Inc.” on October 19, 1981.
Investment and Franchisee Fees
The total investment necessary to begin operation of an Erik's DeliCafe franchise ranges from $288,500 to $521,600. This includes the initial franchise of $20,000 that must be paid to the franchisor for the first franchise. Discounts on these fees may apply if you buy an additional franchise or have managed a company owned DeliCafe. See Item 5 of this disclosure document for details.

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. Restaurants (Sit-Down) Industry

$519,003 / unit

Franchise Type: Standard

Average Revenue During 2020

$519,003
$492,460
Industry Low
$3,538,558
Industry High
Show All Years +

Employee Contact Database

# Name Position Phone Number Email Address

Distribution of Erik's DeliCafe Franchisees

Erik's DeliCafe Franchise System Development in 2020

FAQ

How much investment do I need to start my own Erik's DeliCafe business?
Franchisees typically require at least $288 to $521 investment to get their Erik's DeliCafe business started
What are the initial franchise fees for Erik's DeliCafe?
Franchisees typically need to pay at least $20 in fees directly to Erik's DeliCafe in order to earn the right to launch their business
How much money can I make with a Erik's DeliCafe franchise? What are the average revenues for a typical Erik's DeliCafe business?
We estimate that the average revenue of an individual Erik's DeliCafe unit is approximately $519,003. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Erik's DeliCafe unit? What is my contractual commitment?
Erik's DeliCafe franchisees are typically required to sign up to a 10 year contract initially. The renewal length is 10 years. You can of course exit early but don’t expect to get any refund!

Accessibility

4 /10
The Franchisor's investment costs ranges from $568,020 to $2,528,500 which is Much Higher than the $0 to $0 average in the Restaurants (Sit-Down) industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

Franchises in the Same Industry

Popular Franchises

Is this your Franchise?

Update your profile with photos, videos, useful information, and start connecting with prospective franchisees today

CLAIM THIS FRANCHISE