Erbert & Gerbert's Sandwich Shop Franchise Cost, Revenue & Review 2026
- Investment
- $194K – $460K
- Disclosed sales
- $617K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Erbert & Gerbert's is a fast-casual franchise serving made-to-order sub sandwiches, wraps, and soups. Franchisees run the shops, managing food prep, staffing, and counter, delivery, and non-traditional venue service.
FranchiseVerdict summary · 2026
A Erbert & Gerbert's Sandwich Shop franchise requires a total initial investment of $194K – $460K, including a $5K – $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $617K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $194K – $460K
- 20th pct Service Resta…
- Avg gross sales
- $617K
- Outlet subset8th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 60
- 69th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $194K – $460K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $617K/year (reported for a subset of outlets rather than the whole system).
- RISKVerdict C (Average), verdict score 41/100 (higher is better).
- GROWTHNegative: net -4 franchised outlets in the latest year (10 opened, 10 closed); 1 signed but not yet open (Item 20).
- DECLINESystem contracting at -13.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- E & G Franchise Systems, Inc.
- CEO title
- President and Chief Executive Officer
- Eric Wolfe
- Incorporated in
- WI
- HQ
- E3110 Hailey Lane, Eau Claire, Wisconsin 54701
- Auditor
- Bauman Associates
- Audited financials
- Franchisor revenue
- $3.9M
- vs $4.1M prior year
Overview
About
- CEO
- Eric Wolfe
- Headquarters
- WI
- Founded
- 1988
- FDD year
- 2025
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 33% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Leasehold Improvementsnot refundable | $50K | $145K | |
| Lease Payment and Security Depositnot refundable | $4K | $14K | |
| Travel and Living Expenses for You and Your Manager During Trainingnot refundable | $2K | $4K | |
| Insurance Premiums - 3 Monthsnot refundable | $2K | $4K | |
| Opening Inventory of Supplies, Food and Beveragesnot refundable | $3K | $10K | |
| Uniforms, Small Wares, Office Supplies, Menus and Other Printed Materialsnot refundable | $6K | $8K | |
| Exterior Signage and Interior Decornot refundable | $10K | $18K | |
| Furniture, Fixtures and Equipmentnot refundable | $40K | $150K | |
| Computer Systemsnot refundable | $9K | $11K | |
| Professional Servicesnot refundable | $3K | $5K | |
| Architectural/Design Servicesnot refundable | $9K | $17K | |
| Miscellaneous Licenses, Deposits and Permitsnot refundable | $3K | $5K | |
| Grand Opening Advertising and Promotionnot refundable | $10K | $10K | |
| Additional Funds - 3 Monthsnot refundable | $15K | $30K | |
| Total initial investment | $194K | $460K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $194K – $460K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $30K
- Top 40% of category vs category
- Franchise fee
- $5K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of net sales |
| Marketing / ad fund | 2.0% |
| Training fee | $2K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Inventory (initial) | $3K – $10K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 37% below the quick-service restaurants norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Erbert & Gerbert's Sandwich Shop until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$350K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Erbert & Gerbert's Sandwich Shop unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $617K
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 38 outlets
- vs category median 19
- Range (low → high)
- $118K→$1.8MCited, not corroborated — printed on page 48 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $617K/year in gross sales. Revenue-to-investment ratio: 1.9x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -13.8% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Erbert & Gerbert's Sandwich Shop Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 60
- Opened
- 10
- Last reporting year
- Closed
- 10
- Turnover rate
- 42.9%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (3-yr)
- -13.8%
- Net unit change over 3 years
- 3-yr CAGR
- -13.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 1
- 0.02 per open outlet · Item 20 Table 5
- Projected new
- 5
- Franchisor's next-year forecast
- Termination rate
- 5.4%
- Franchisor-initiated terminations
- Ceased ops
- 7.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 9 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
9
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Declining franchise system with unresolved litigation history, missing profitability disclosure, and unclear financial viability creates meaningful investment risk requiring deep franchisee validation.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two disclosed cases: (1) Keepin' It Food LLC arbitration (2019) alleging misrepresentation, settled 2022 with franchisor paying $50,000; (2) E&G v. Janik Group (2018) for post-termination non-competition violations, settled 2019 with franchisor purchasing territory for $77,500.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Bauman Associates
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 states audited financial statements for FY ending December 31, 2024, 2023, and 2022 are attached as Exhibit A; the statement figures and auditor/CPA firm name are not present in the available text extract.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 41 / 100 verdict
- 01MINORUnit count declining 6.7% YoY (60 units) indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02MINORNo average net income disclosure in FDD (Item 19) prevents accurate ROI validation against $39.5K-$460K investment range
- 03HIGHTwo litigation settlements ($50K + $77.5K) within 4 years suggest franchise relationship management issues and location/territory disputes
- 04MEDHigh investment ceiling ($460K) combined with undisclosed profitability creates significant downside risk for multi-unit operators
- 05MINOR6% royalty on $617K average revenue ($37K/year) is substantial without knowing actual net margins or whether breakeven is achievable
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Eau Claire, Wisconsin |
| Jury trial waiver | No |
| Governing law | WI |
| Litigation count | 2 |
View Item 3 litigation summary
Two disclosed cases: (1) Keepin' It Food LLC arbitration (2019) alleging misrepresentation, settled 2022 with franchisor paying $50,000; (2) E&G v. Janik Group (2018) for post-termination non-competition violations, settled 2019 with franchisor purchasing territory for $77,500.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 153 hrs
- Training location
- West St. Paul, MN or Certified Training Restaurant as designated by franchisor
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Item 20 · call current owners
Franchisee Contacts
57 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Erbert & Gerbert's Sandwich Shop franchise?
The total investment to open a Erbert & Gerbert's Sandwich Shop franchise ranges from $194K – $460K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Erbert & Gerbert's Sandwich Shop franchise owners earn?
According to Item 19 of the Erbert & Gerbert's Sandwich Shop FDD, the average gross sales per unit is $617K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Erbert & Gerbert's Sandwich Shop?
Erbert & Gerbert's Sandwich Shop is franchised by E & G Franchise Systems, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Erbert & Gerbert's Sandwich Shop FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Erbert & Gerbert's Sandwich Shop FDD and qualifies whose outlets they describe.
What is Erbert & Gerbert's Sandwich Shop's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Erbert & Gerbert's Sandwich Shop (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Erbert & Gerbert's Sandwich Shop franchise locations are there?
As of their most recent FDD filing, Erbert & Gerbert's Sandwich Shop has 60 total units in the United States, including 56 franchised units and 4 company-owned units. 10 new units were opened in the latest reporting year.
Is Erbert & Gerbert's Sandwich Shop a good franchise to buy?
FranchiseVerdict rates Erbert & Gerbert's Sandwich Shop as a C-grade franchise with a verdict score of 41 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.