Erik’s DeliCafe
Bottom line
- Total investment $201K – $552K including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $851K/year (median $844K).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Erik’s DeliCafe 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 Erik’s DeliCafe units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.2M purchase
Total debt
$5.8M
SBA $3.6M + senior + seller note
Overview
About
Franchisees operate casual deli and cafe locations serving sandwiches, prepared foods, and beverages in walk-in or counter-service environments. Day-to-day operations include food preparation, inventory management, staffing, customer service, and local marketing to drive foot traffic and repeat business.
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 · 5 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
Erik's DeliCafe presents CAUTION-level risk due to franchisor going concern status, opaque profitability despite $851K average revenue, tiny stagnant unit base, and unprotected territories—inadequate disclosure makes ROI validation impossible.
Score breakdown · what drove the 54 / 100 rating
- 01HIGHGoing Concern status indicates potential financial distress or viability uncertainty at franchisor level
- 02MINORNo net income disclosure despite $851K average revenue — profitability unclear and concerning
- 03MINOROnly 28 units with unknown growth trajectory suggests stagnant or declining system
- 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 05MEDHigh investment range ($201K-$551.5K) relative to undisclosed profitability is a major red flag
- 06HIGHNo litigation disclosed but going concern status may indicate underlying disputes or regulatory issues
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
33 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Erik’s DeliCafe · FDD (2025) PDF