About E & G Franchise
Erbert and Gerbert's Sandwich Shop is a quick service restaurant franchise featuring gourmet sandwiches and specialty soups available for on premises dining, pick up, drive through, and delivery.
The brand offers both traditional and non traditional location formats, with franchise fees of $30,000 for traditional locations and $5,000 for non traditional.
The company has been franchising since 1992.
E & G Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 (Traditional); $5,000 (Non-Traditional) | One-time payment upon signing |
| Royalty Fee | 6% of Net Revenue (Traditional); 5% (Non-Traditional) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Net Revenues (Traditional) | National brand fund |
| Total Investment Range | $193,820 – $460,270 | Includes build-out, inventory, working capital |
The investment range of $194K–$460K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Net Revenue (Traditional); 5% (Non-Traditional)) and marketing fee (2% of Net Revenues (Traditional)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Leasehold Improvements | $50,000 | $145,000 |
| Lease Payment and Security Deposit | $4,000 | $14,000 |
| Training Travel | $1,500 | $4,200 |
| Insurance (3 months) | $2,000 | $3,500 |
| Opening Inventory | $3,000 | $10,000 |
| Uniforms, Small Wares, Supplies | $6,000 | $8,000 |
| Signage and Interior Decor | $10,000 | $18,000 |
| Furniture, Fixtures, Equipment | $40,000 | $150,000 |
| Computer Systems | $8,820 | $11,070 |
| Professional Services | $2,500 | $5,000 |
| Architectural/Design | $8,500 | $16,500 |
| Licenses, Deposits, Permits | $2,500 | $5,000 |
| Grand Opening | $10,000 | $10,000 |
| Additional Funds (3 months) | $15,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 plus training fee per trainee |
| Renewal Fee | $5,000 (Traditional); $2,500 (Non-Traditional) |
| Technology Fee | $100/month |
| Audit Fee | Costs of audit if underpaid 2%+ |
| Required Local Advertising | 2.5% of Net Revenues quarterly (Traditional) |
| Loyalty Program Fee | $130/month |
| Late Fee | $100 plus $100/week per delinquent item |
| Liquidated Damages | $100/day (manual) or $1,000/day (unauthorized products) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 15 days (Traditional); up to 5 days (Non-Traditional) |
| Classroom Training | 35 (Traditional); 14 (Non-Traditional) |
| On-the-Job Training | 106 (Traditional); 17 (Non-Traditional) |
| Training Location | Rochester MN, Eau Claire WI, or Certified Training Restaurant |
| Additional Training | On-site opening assistance up to 5 days at E&G's expense. Post-opening at $1,500/person. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Assigned Territory based on 3-5 minute service radius |
| Exclusive Territory | Yes |
| Territory Size | 3-5 minute service radius around Franchised Location |
| Description | E&G will not establish or permit others to establish an E&G Restaurant within the Assigned Territory. E&G retains rights for other channels, Non-Traditional Locations outside territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years (Traditional); 5 years (Non-Traditional) |
| Renewal Term | Two additional 10-year (Traditional) or 5-year (Non-Traditional) terms |
| Renewal Fee | $5,000 (Traditional); $2,500 (Non-Traditional) |
| Renewal Conditions | Sign then-current agreement; pay fee; in compliance; upgrade premises; sign release. |
| Transfer Fee | $5,000 plus training fee per trainee |
| Transfer Conditions | Franchisor approval; transferee must qualify; right of first refusal. |
| Termination for Cause | 10 days for monetary defaults; 30 days for most others; immediate for felony, fraud, abandonment, bankruptcy. |
| Non-Compete Period | 2 years |
| Non-Compete Details | 2 years within 10 miles of Franchised Location or any E&G Restaurant. Not applicable to Non-Traditional post-termination. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Must participate directly in operation. Manager must complete training and hold at least 5% interest (Traditional). Key Operator for Non-Traditional need not hold equity. |
| Required Suppliers | Must purchase certain foods, beverages, products, and computer systems from designated sources. 30-70% of startup and 25-35% of ongoing from approved suppliers. |
| Supply Restrictions | Must meet E&G standards. May request alternative supplier approval. |
| Franchisor Revenue from Suppliers | Rebates 0.01-2.75% of franchisee purchases, ~25.5% of E&G's total 2021 revenue. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
E & G Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
E & G Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
E & G System Growth
E & G currently operates 69 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 7 | 5 | 90 |
| 2020 | 1 | 17 | 73 |
| 2021 | 2 | 6 | 69 |
Transfers: 2 | Closures: 6
State Registrations
Registered in 15 states: CO, FL, IL, IN, IA, MI, MN, NE, NC, ND, OH, OR, SD, TX, WI
Franchisor Financials (Item 21)
Audited by Bauman Associates, Ltd. for year ending December 31.
E & G Franchise — FAQ
Similar Food & Beverage Franchises
Interested in E & G?
Get free info on this franchise. We will send you a detailed FDD report by email.