Erbert And Gerberts
Erbert & Gerbert's Sandwich Shop franchises offer gourmet sandwiches and specialty soups in both traditional and non-traditional locations. Known for their quality food and service, this franchise operates in the quick-service restaurant sector.
About Erbert And Gerberts
Erbert & Gerbert's Sandwich Shop is a restaurant franchise specializing in submarine sandwiches. The chain was founded in Eau Claire, Wisconsin in 1987, with the first store opening in 1988. The company has more than 50 locations throughout Arizona, Colorado, Indiana, Iowa, Michigan, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Ohio, Texas and Wisconsin, as well a single location in both North Carolina and Georgia. Its headquarters are in Eau Claire, Wisconsin. Their shops are often located near college areas.
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Erbert And Gerberts franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open an E & G Restaurant can range from $39,500 to $460,270. This includes a payment of $6,250 to $10,750 to the franchisor or affiliate and may also include a nonrefundable Territory Fee of $10,000 for each E & G Restaurant you agree to develop under an Area Development Agreement [p.1].
What is the initial franchise fee?
The initial franchise fee varies depending on the agreement type. For a single unit franchise, it is $30,000 [p.12]. If signing an area development agreement for your first E & G Restaurant, the fee is $30,000, but for each additional restaurant, it is $20,000 [p.12]. This fee is fully earned upon signing and is not refundable [p.154, p.106, p.13].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Net Revenues on a weekly basis [p.107] and can also be paid monthly at 5% of Net Revenues [p.155]. Additionally, there is an Advertising Fee that is deposited into the Advertising Fund for system-wide advertising activities [p.109], with the franchisee having no guarantee of direct benefit proportional to their contribution [p.109, p.33].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not contain information about the duration of the initial franchise agreement or the renewal process.
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts. The provided FDD sections discuss the franchisor's rights regarding transfers and sales of their business but do not detail the specific processes or requirements for a franchisee to sell or transfer their franchise.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on several grounds, including if you are alleged to have committed a felony or other criminal misconduct that adversely affects the business, engage in fraudulent activity harming the business, abandon the franchise, go bankrupt, fail to comply with the agreement more than twice in 24 months, make material misrepresentations in your application, violate non-competition, non-solicitation, or confidentiality obligations, or commit any other act allowing termination without notice under applicable state law. [p.167, p.122]
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific financial requirements such as net worth or liquid capital needed to qualify for the franchise.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory and have no right to operate an Optional Program either within or outside your Assigned Territory without a separate agreement. Traditional Location franchises may provide delivery and catering services inside and outside their Assigned Territory, but must cease such services if another E & G Restaurant is established in the area outside of your Assigned Territory [p.39]. This isn't specified in the excerpts for Non-Traditional Locations regarding territorial protection outside the Assigned Territory.
What training and ongoing support does the franchisor provide?
The initial training program lasts up to 15 days and takes place at a location selected by the franchisor in Minnesota. This training is provided free of charge for up to two people for Traditional Locations, but attendees are responsible for their own travel and living expenses. Additional employees require payment for training. The training can be conducted virtually at the franchisor's discretion and is given on an as-needed basis. [p.29] [p.31]
How many franchised outlets are there, and how many have closed or been terminated?
There were approximately 60 total franchised outlets as of December 31, 2023, with about 38 Traditional Location franchised outlets open for all 12 months during the 2023 calendar year. The FDD does not specify the exact number of closed or terminated outlets, but it mentions that a list of franchisees who have been terminated, cancelled, transferred, not renewed, or otherwise ceased to do business under the franchise agreement during the most recently completed fiscal year can be found on page 92 [p.92].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares financial performance information based on actual records from existing outlets. According to [p.48], the franchisor provides a representation of the actual 2023 annual revenues for 38 Traditional Location franchised outlets that were open for all 12 months during that year. This information is included in Item 19 of the disclosure document.
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell only those goods and services that the franchisor has approved [p.43]. The franchisor can change the types of required or authorized products and will notify you via bulletin or supplement to the Manual if changes occur. You must purchase items from manufacturers, suppliers, or distributors designated by the franchisor, or from other suppliers approved by them who meet their specifications, including potentially purchasing directly from the franchisor or its affiliates [p.3; p.104; p.124; p.169].