In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the Erbert & Gerbert’s Sandwich Shop franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for an Erbert & Gerbert’s Sandwich Shop franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Erbert & Gerbert’s Sandwich Shop franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Erbert & Gerbert’s Sandwich Shop’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average revenues for the top tier, mid tier, and low tier of the 59 franchised Erbert & Gerbert’s Sandwich Shop businesses that were open for all 12 months during the 2016 calendar year
- 2016 average food costs for the top tier, mid tier, and low tier of the 57 franchised Erbert & Gerbert’s Sandwich Shop businesses that were open for all 12 months during the 2016 calendar year and who delivered financial reports to the franchisor showing food costs
Section I – Background Information
12 Things You Need to Know About the Erbert & Gerbert’s Franchise
Opens 100th Location
1. In January, Erbert & Gerbert’s Sandwich Shop celebrated the opening of its 100th location. The shop, located in the Minneapolis-St. Paul area, is the second unit for franchisee Manuel Pizaño-Carlo, who signed a multi-unit deal with the company and plans to open at least three more shops in the area over the next five years.
2. When speaking of the opening of the 100th location, Eric Wolfe, Erbert & Gerbert’s president and CEO said, “This is the future of great, gourmet in particular, sandwich concepts. People want a familiar name but a ‘touch above’ the run-of-the-mill fare of fast food.” He also says that this milestone is a turning point as the company accelerates its expansion over the next few years.
3. To give back to its customers for helping Erbert & Gerbert’s reach this achievement, the brand featured a few special offers at participating locations from January 11-15. On January 11, the first 100 customers received any sandwich for $1 and throughout the event, customers were able to get $1 off any sandwich purchase.
Launches New Franchisee Recruitment Website
4. At the end of May, Erbert & Gerbert’s Sandwich Shop launched a new franchisee recruitment website at erbertandgerbertsfranchise.com as the company continues what it is calling a “rapidly growing expansion” across the United States. The site explains to prospective franchisees the key differentiators and advantages to opening an Erbert and Gerbert’s, such as strong support from an experienced franchise team that helps owners build a strong, scalable business.
5. According to Erbert & Gerbert’s president and CEO Eric Wolfe, “Now is the perfect time to get involved with the Erbert and Gerbert’s opportunity, as momentum is on our side after reaching 100 stores.” The company says that its 30 years of business have helped it “hone down to a science” the supply chain, operations, and other aspects of the business for its franchisees.
Releases Healthier Menu Items
6. Erbert & Gerbert’s Sandwich Shop rolled out its newest limited-time menu option, Fit & Flavorful Wraps, to all of its locations in early October. The wraps, which are being promoted as a health-conscious option, feature the brand’s traditional flavors, but with fewer calories, fats, and carbs.
7. Erbert & Gerbert’s released two new wraps: the turkey wrap, featuring a 12″ Mission Hearty Grains heat-pressed flour tortilla with Sabra garlic hummus, lettuce, tomato, turkey, avocado, cheese, and cucumber; and the roast beef wrap, which was also served on the same tortilla with roast beef, cheddar, banana peppers, Sabra garlic hummus, lettuce, and tomato.
8. Eric Wolfe, president and CEO of Erbert & Gerbert’s said, “We are always looking for ways to enhance our menu offerings. It’s about sandwiches you can’t find in a normal sub shop. It’s part of our culture. We’re so excited to offer our guests something new and unique to try.”
9. Erbert & Gerbert’s Sandwich Shop was founded in 1987 by Kevin and Beth Schippers; they opened the first location a year later in Eau Claire, Wisconsin. The company and its signature sandwiches were named after characters in stories that Kevin’s father made up for him as a child.
10. The Schippers started franchising Erbert & Gerbert’s in 1992. The franchise typically opens locations near college campuses. In 2003, the Schippers sold the company to a group of investors led by Eric Wolfe, who is still the CEO of Erbert & Gerbert’s. The Schippers still own the original location in Eau Claire.
11. Erbert & Gerbert’s growth has been moderate, but has picked up in recent years. Today, there are over 100 sandwich shops across 12 states.
Entrepreneur’s Franchise 500
12. Erbert & Gerbert’s Sandwich Shop has appeared on Entrepreneur’s annual Franchise 500 list twice in the last decade. The company ranked at No. 299 in 2017 and at No. 335 in 2016.
Section II – Estimated Costs
- Please click here for detailed estimates of Erbert & Gerbert’s Sandwich Shop franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Erbert & Gerbert’s Sandwich Shop’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- Erbert & Gerbert’s financial performance representation consists of two parts. Part 1 presents the actual 2016 annual revenues of the franchised Erbert & Gerbert’s Restaurants that were open for all 12 months during the 2016 calendar year.
- Part 2 presents the actual 2016 food costs of the franchised Erbert & Gerbert’s Restaurants that were open for all 12 months during the 2016 calendar year and who delivered financial reports to the franchisor showing food costs.
- Franchised outlets that were not open for the entire 12 months of 2016 have been excluded from the representation as their partial year performance is not indicative of the performance the franchisor would reasonably expect to see over an entire calendar year.
- This financial performance representation is based on the reports submitted to the franchisor by its franchisees. This information has not been audited and may not be based on generally accepted accounting principles.
- All figures are based on full-service outlets. No Non-Traditional Location outlet’s performance is included. This performance representation is no indication of what a Non-Traditional Location outlet may experience.
- The actual average annual revenue numbers do not reflect the costs of goods sold, operating expenses, or other costs or expenses that must be deducted from revenue to obtain net income or profit.