ERBERT AND GERBERT'S SANDWICH SHOP
E & G Franchise Systems, Inc. franchises Erbert & Gerbert's Sandwich Shop restaurants, which specialize in gourmet sandwiches and specialty soups served on premises, for pick-up, delivery, and drive-through in traditional locations like strip centers and non-traditional sites such as malls or campuses. The business operates under proprietary recipes, systems, marks, and procedures provided by the franchisor. It targets quick-service restaurant consumers in a competitive market influenced by economic conditions and consumer tastes.
Franchise Costs
6% royalty + 2% ad fund + $100/mo technology fee + $130/mo loyalty program fee
Financial Performance
Item 19 Financial Performance
Data Based On: 38 Traditional Location franchised outlets open for all 12 months during the 2023 calendar year.
* Calculated weighted average gross revenue: (13 units × $972,467 + 13 units × $561,031 + 12 units × $361,962) / (13 + 13 + 12) = $638,922. Median gross revenue is taken from the 'Mid Tier' median annual revenue as no overall median was explicitly provided for all units. Revenue top quartile is the average revenue for the 'Top Tier', and revenue bottom quartile is the average revenue for the 'Lower Tier'. No information on expenses, net income, net profit, or EBITDA was provided, so those fields are null.
Extracted Item 19 Section
How ERBERT AND GERBERT'S SANDWICH SHOP Compares
Key Insights
- Lower investment than 82% of Fast Food franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
ERBERT AND GERBERT'S SANDWICH SHOP Current | $194K – $460K | $30K | 6.0% | 60 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M – $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K – $728K | $35K | 6.0% | 2,647 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 Fast Food franchises by location count.
SBA Loan History
Historical SBA 7(a) loan data for ERBERT AND GERBERT'S SANDWICH SHOP franchisees (2019 – 2023)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
58 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
58 Contacts Available
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Due Diligence
Litigation (Item 3)
Misrepresentation of franchise location, buildout costs, COGS, and support levels; breach of contract; counterclaim for unpaid royalties.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a ERBERT AND GERBERT'S SANDWICH SHOP franchise ranges from $193,820 to $460,270. This includes a franchise fee of $30,000. Ongoing royalty fees are 6.0% of gross sales.
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