Erbert & Gerbert's Sandwich Shop
Bottom line
- Total investment $40K – $460K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $617K/year (median $565K).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 15 loans (below the industry average).
- System 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Erbert & Gerbert's Sandwich Shop unit return on the cash you put in?
Unlevered ROIC · per unit
33%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Erbert & Gerbert's Sandwich Shop units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$864K
on $4.3M purchase
Total debt
$3.5M
SBA $2.2M + senior + seller note
Overview
About
Erbert & Gerbert's franchisees operate fast-casual sandwich shops serving made-to-order submarine sandwiches and related menu items. Day-to-day operations include food preparation, customer service, inventory management, and staff scheduling in either traditional retail locations or non-traditional venues (kiosks, ghost kitchens, airports). Franchisees must manage food costs, labor, and local marketing while maintaining brand standards and paying ongoing 5-6% royalties.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining franchise system with unresolved litigation history, missing profitability disclosure, and unclear financial viability creates meaningful investment risk requiring deep franchisee validation.
Score breakdown · what drove the 52 / 100 rating
- 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
- 05HIGHGoing concern status 'False' is ambiguous—unclear if franchisor or franchisees face financial viability concerns
- 06MINOR6% 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
63 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Erbert & Gerbert's Sandwich Shop · FDD (2025) PDF