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FDD Talk: Earl of Sandwich Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on January 21, 2021 by Franchise Chatter Leave a Comment
in FDD Talk: Food Franchises, Franchise Earnings, Sandwich Franchise, Sub Sandwich Franchise



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In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Earl of Sandwich franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for an Earl of Sandwich franchise, based on Item 7 of the company’s 2019 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Earl of Sandwich franchise, based on Items 5 and 6 of the company’s 2019 FDD
  • Section IV – Number of franchised and company-owned Earl of Sandwich outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
  • Section V – Presentation and analysis of Earl of Sandwich’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
  • 2018 average, median, high, and low gross sales; and average, high, and low square footage for the 14 franchised Non-Traditional Restaurants that were open during the entire 2018 calendar year

Section I – Background Information

12 Things You Need to Know About the Earl of Sandwich Franchise

Opens First Location in Canada

1.  In mid-February 2020, Earl of Sandwich opened its first location in Canada in Winnipeg. According to franchisee Laurent Raymond, “My family and I were introduced to Earl of Sandwich on trips to Las Vegas. We were always impressed with the quality and affordability of the sandwiches and when the franchise opportunity presented itself, we jumped on it. With my daughters running the day-to-day operations, we expect to open more Earl of Sandwich locations throughout Manitoba.”

America's Most Lucrative Franchises of the Year

2.  Robert Earl, co-founder of Earl of Sandwich and founder and CEO of Planet Hollywood, said, “I am delighted to see Earl of Sandwich continue its growth with our first location in Canada. We are excited to bring our delicious gourmet sandwiches, salads and wraps to new customers in Winnipeg and look forward to continued growth in Manitoba. We are confident it will become the go-to place to dine, carry out, or for any catering needs.”

Expands Las Vegas Footprint

3.  At the beginning of December 2019, Earl of Sandwich expanded its Las Vegas footprint with the opening of the first of three restaurants planned for the area. Located in the first level of the Fashion Show Mall at 3200 S. Las Vegas Blvd. #1610, the restaurant is owned and operated by Las Vegas local, Aman Singh. He also has plans for two more Earl of Sandwich locations in Henderson and Centennial Parkway.

4.  Singh said, “I couldn’t be more excited about becoming a part of the Earl of Sandwich family. I was introduced to the brand by being a customer first, and after trying the sandwiches, I knew it was a brand I wanted to be a part of.”

5.  Since moving to the Las Vegas area 13 years ago, Singh and his family have fully embraced becoming a part of the community through entrepreneurship and engagement. Singh owns four 7-Eleven locations in addition to his new Earl of Sandwich locations. “I always dreamed of owning my own business,” adds Singh. “Opening my first Earl of Sandwich is the culmination of hard work and dedication to the first businesses, and I am excited to see what the future will hold.”


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6.  According to Robert Earl, a founding partner of Earl of Sandwich and founder and CEO of Planet Hollywood, “I am thrilled to see Earl of Sandwich continue its growth in the Las Vegas community. We are excited to continue to grow our presence in the area and to bring the same delicious gourmet sandwiches, salads and wraps to new customers. We are confident it will become the go-to place to dine, carry out, or for any catering needs.”

Named TripAdvisor’s Top Travelers’ Choice

7.  In late October 2019, Earl of Sandwich announced that it had been recognized as the winner for Fast Casual in the 2019 TripAdvisor Travelers’ Choice Awards for Restaurants, ranking first in the top 10. Based on a full year of TripAdvisor reviews, award-winning restaurants are considered the best-in-class by diners across the globe.

8.  Robert Earl, co-founder of Earl of Sandwich, said, “We are delighted and honored to have been voted the number 1 top Fast Casual restaurant by TripAdvisor travelers. On behalf of my partner, John Montagu, the 11th Earl of Sandwich, and myself, I want to thank TripAdvisor travelers for recognizing our commitment to excellence. I also want to thank our amazing EoS team for their hard work and dedication.”

9.  Bertrand Jelensperger, senior vice president of TripAdvisor Restaurants, said, “Congratulations to all of the restaurants throughout the world that have been recognized this year. These Travelers’ Choice Awards highlight eateries of all types known for impeccable quality and service. Winners should be proud of their award, as it is a true testament to the positive experience they have served to diners.”

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Company History

10.  Earl of Sandwich was founded in 2004 by Orlando Montagu, his father John Montagu, who is the 11th Earl of Sandwich, and Robert Earl, the founder of Planet Hollywood, in Disney Springs in Orlando, Florida. Montagu and his father are direct descendants of the 4th Earl of Sandwich, who is credited with inventing the sandwich in the 18th century. Of course, the Montagus wanted to offer high quality sandwiches at affordable prices.

11.  In 2005, Earl of Sandwich started franchising with the first franchised location opening in Sugar Land, Texas. Over the past decade and a half, Earl of Sandwich has grown slowly with locations in various parts of the United States as well as Canada, France, and the Philippines.

Entrepreneur’s Franchise 500

12.  Earl of Sandwich did not rank on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Earl of Sandwich franchise costs, based on Item 7 of the company’s 2019 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Earl of Sandwich’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

  • Outlets at the Start of the Year:  17
  • Outlets at the End of the Year:  19
  • Net Change:  +2

2017

  • Outlets at the Start of the Year:  19
  • Outlets at the End of the Year:  20
  • Net Change:  +1

2018

  • Outlets at the Start of the Year:  20
  • Outlets at the End of the Year:  19
  • Net Change:  -1

Company-Owned

2016

  • Outlets at the Start of the Year:  10
  • Outlets at the End of the Year:  9
  • Net Change:  -1

2017

  • Outlets at the Start of the Year:  9
  • Outlets at the End of the Year:  11
  • Net Change:  +2

2018

  • Outlets at the Start of the Year:  11
  • Outlets at the End of the Year:  11
  • Net Change:  0

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

  • The Statement of Average Gross Sales consists of the average annual Gross Sales of 14 franchised Non-Traditional Restaurants that were open during the entire 2018 calendar year.
  • The Statement of Average Gross Sales excludes the results from: (a) three Franchised Restaurants that are not operated within a Non-Traditional Location; (b) three Franchised Restaurants that were not open during the entire 2018 calendar year, all of which are operated within a Non-Traditional Location; and (c) one franchised Non-Traditional Restaurant that offers full table service.
  • The Gross Sales of Franchised Restaurants were derived from unaudited financial reports submitted by franchisees for the purpose of computing royalty fees.
  • Some Earl of Sandwich Restaurants have sold this much. Your individual results may differ. There is no assurance that you’ll sell as much.
  • The franchisor has not included the costs of sales, operating costs, or other costs and expenses for Earl of Sandwich Restaurants. Therefore, this financial performance representation does not reflect the costs of sales, operating expenses, or other costs and expenses that must be deducted from the Gross Sales figures to obtain your net income or profit.
  • You should conduct an independent investigation of the costs and expenses you will incur in operating an Earl of Sandwich Restaurant. The franchisor recommends that you make your own independent investigation of the costs and expenses you will incur in operating an Earl of Sandwich Restaurant to determine whether or not an Earl of Sandwich Restaurant operated by you may be profitable. Franchisees or former franchisees listed in the Franchise Disclosure Document may be one source of this information.
  • You should consult with an attorney and other advisors before signing the Franchise Agreement.

Statement of Average Gross Sales of Franchised Non-Traditional Restaurants for 2018



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