Updated August 3, 2021.
Detailed Estimates of Erbert & Gerbert’s Sandwich Shop Franchise Costs Based on Item 7 (Estimated Initial Investment) of Erbert & Gerbert’s 2021 Franchise Disclosure Document
Single Outlet (Traditional Location)
- For the estimated range of costs, the franchisor relied on its and its affiliates’ experience in the restaurant business since 1988 and the experience of its franchisees since 1992.
- Payments are not refundable unless otherwise noted.
- The franchisor does not offer, either directly or indirectly, financing to you for any items, but it reserves the right to do so in the future. The availability of financing will depend upon various factors like the availability of financing generally, your credit worthiness, other security that you may have, and the requirements of lending institutions concerning the type of business to be operated by you.
1. Initial Franchise Fee: $30,000
- The Initial Franchise Fee is $30,000, unless the Franchised Business is an Erbert & Gerbert’s Restaurant developed under an Area Development Agreement, in which case the Initial Franchise Fee will be $20,000 for all subsequent units other than the first unit.
- Under the development program, when you sign the Area Development Agreement, you must pay the franchisor a Territory Fee equal to the number of Franchised Locations to be opened under the Area Development Agreement multiplied by $10,000 and you will receive a $10,000 credit against the Initial Franchise Fee owed when you sign the Franchise Agreement for each Erbert & Gerbert’s Restaurant.
2. Leasehold Improvements: $50,000 to $145,000
- These figures represent the cost to lease and remodel an existing building in a partially finished condition. These figures do not include demolition costs or major structural building modifications.
- Erbert & Gerbert’s Restaurants are typically located in a store front, shopping center, or strip mall, however a small stand-alone unit with a drive thru may be possible. Typically, premises will have approximately 750 to 2,000 square feet of floor space. The average size of a small standalone unit is 700 to 900 square feet and the average size of a standard Traditional Location will be 1,800 square feet.
- The high estimate of the Leasehold Improvements includes the cost to add a drive-thru service to your Franchised Business. These estimates will vary depending on location, local business economy, availability, accessibility, competition, and general economic conditions.
- You may be able to negotiate into your lease an obligation of the landlord to contribute funds to be used for tenant improvements. These figures assume no landlord contribution toward leasehold improvements.
3. Lease Payment and Security Deposit: $4,000 to $14,000
- Erbert & Gerbert’s Restaurants are generally operated from leased premises. If you choose to purchase the land and building for your Franchised Business, your initial costs will be significantly higher than if you choose to lease and remodel the Franchised Location.
- The cost to purchase land on which to construct the building may vary widely depending upon the location of the land, the demand for the site, the zoning, the assessed value of the parcel, the attributes of the parcel and related area, such as parking availability, accessibility, traffic flow, and the general economic conditions.
- The monthly rental for your Franchised Location may include common area maintenance fees and real estate taxes. The amount indicated includes a one-month rental payment and the security deposit, which is generally one month’s rent.
- The terms of a lease may provide a build-out time period during which lease payments are not required, but some leases may require lease payments during construction.
4. Travel and Living Expenses for You and Your Manager During Training: $1,500 to $4,200
- You must pay for travel and other expenses while you and your manager attend the Initial Training Program.
5. Insurance Premiums – 3 Months: $2,000 to $3,500
- These amounts represent 3 months of premiums for the required insurance, including statutory workers’ compensation deposits your state may require. The amount of workers’ compensation deposits will vary depending on the state in which your Franchised Business is located.
6. Opening Inventory of Supplies, Food, and Beverages: $3,000 to $10,000
7. Uniforms, Small Wares, Office Supplies, Menus, and Other Printed Materials: $6,000 to $8,000
8. Exterior Signage and Interior Decor: $10,000 to $18,000
9. Furniture, Fixtures, and Equipment: $40,000 to $85,000
10. Computer Systems: $8,820 to $11,070
- The cost for the computer systems may be higher if you choose to include optional features above the franchisor’s requirements.
- This estimate is based on the cost to purchase the hardware. Leasing options may be available.
- Included within this range is your first 3 months of the software maintenance and support fees for the point of sale system and 3 months of fees for the online ordering and loyalty program systems. You must participate in Erbert & Gerbert’s loyalty program.
- If you need to purchase a computer system, these costs will be additional to the ones listed in this estimate.
- Erbert & Gerbert’s Revel computer system, which is specified for Erbert & Gerbert’s Restaurants in Traditional Locations, is available for you to purchase from an approved supplier at between $5,000 and $7,500 for a 4-terminal POS computer system, the software maintenance from Revel is estimated at between $350 and $400 per month, and the cost of the loyalty program system from Punchh is $130 per month.
- You must also subscribe to the online ordering platform provided by the franchisor’s approved supplier, Zuppler. The cost for the Zuppler system is $80 per month.
11. Professional Services: $2,500 to $5,000
12. Architectural/Design Services: $8,500 to $16,500
13. Miscellaneous Licenses, Deposits, and Permits: $2,500 to $5,000
14. Grand Opening Advertising and Promotion: $10,000
15. Additional Funds – 3 Months: $15,000 to $30,000
- This item estimates your expenses during the initial 3-month period of operating the Franchised Business (other than the items identified separately in the table). These expenses include estimated rent, payroll costs, benefits, the cost to have your utilities, additional inventory requirements, supplies, etc. but do not include Royalty Fees, Advertising Fees, or an owner’s draw or salary.
- These figures are estimates and you may have additional expenses in order to start the business.
16. Total Estimated Initial Investment: $193,820 to $395,270
Non-Traditional Location Outlet
- Total Estimated Initial Investment: $38,500 to $196,750