Ike’s Love and Sandwiches Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$141,300 - $614,000
Franchise Fee
$80,000
Min Cash Required
$20,000
Total US Locations
105
Business Summary
Ike's Love & Sandwiches operates quick-serve restaurants that offer a variety of meat and vegetarian sandwiches, including gluten-free and vegan options, along with beverages. Franchisees can also choose to offer beer and wine. Each restaurant provides dine-in, take-out, catering, and delivery services. These locations are typically found in high-traffic areas like strip malls, shopping malls, lifestyle centers, and as free-standing establishments, generally requiring a space of 500 to 2,000 square feet.
Corporate History
Ike's, the Franchise, Inc. was established as a Delaware corporation on February 19, 2019, and began offering franchises in the same month. While the franchisor itself does not operate restaurants, its affiliated companies do. Two such affiliates, Ike's Place Inc. (formed July 9, 2009) and Shehadeh Forever Inc. (formed March 24, 2009), own and license the proprietary marks to Ike's, the Franchise, Inc. for use in the franchise system. These affiliates operate fast-casual restaurants under the 'Ike's Love & Sandwiches' trade name.
Financial Overview
Investment Range
$141,300 - $614,000
Franchise Fee (Low)
$80,000
Franchise Fee (High)
$80,000
Minimum Cash Required
$20,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$10,450
Equipment Costs (High)
$285,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial statements, audited as of December 31, 2023, received an unqualified opinion, meaning they present fairly the financial position. However, the FDD highlights a special risk regarding Ike's Love & Sandwiches' financial condition, stating it calls into question the franchisor's financial ability to provide services and support to franchisees. This suggests potential financial challenges despite the clean audit opinion on the presented statements.
Financing Details
Ike's Love & Sandwiches does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
105
Franchised Units
7
Corporate Units
98
Avg Square Footage
1,250
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Ike's Love & Sandwiches has no litigation history to report, as indicated in Item 3 of the FDD.
Bankruptcy History
Ike's Love & Sandwiches has no bankruptcy history to report for the franchisor or its management, as indicated in Item 4 of the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Ike's Love & Sandwiches franchisees must provide notice between six and nine months before the initial term ends. They must be in substantial compliance throughout the initial term and in full compliance at its expiration with the franchise agreement and all other agreements with the franchisor or its affiliates. Franchisees must sign the franchisor's then-current successor franchise agreement, which may have materially different terms but will maintain the same territory boundaries and fees no greater than those imposed on similarly situated franchisees. They must also maintain possession of the premises, obtain landlord consent for lease renewal, renovate or upgrade their restaurant to meet current brand standards and ADA compliance if required, be current on all monetary obligations, and execute a general release of claims against the franchisor.
Training & Support Program
Franchisor Assistance
Ike's Love & Sandwiches provides several types of support to its franchisees. Before opening, the franchisor offers written materials for site and market analysis, conducts on-site location evaluations (for a fee), provides prototype design plans for the restaurant build-out, and loans a Confidential Operations Manual. The franchisor also offers initial training at its headquarters (for up to three trainees, with additional trainees incurring a fee) and reviews grand opening advertising campaigns, reserving the right to conduct the campaign for a fee. Additionally, Ike's Love & Sandwiches provides up to 14 days of on-site pre-opening assistance and training for the first restaurant. After opening, ongoing assistance includes periodic inspections, review of annual advertising plans, management and operations advice (including Manual updates), and various training programs and seminars. The franchisor also administers the Worldwide Creative Marketing Fund, offers indemnification for authorized use of its Marks, and may hold annual franchisee meetings (for a fee). The franchisor also retains the right to determine maximum prices for products where permitted by law.
Initial Training Hours
99
Training Location
Franchisor headquarters in California or an existing Restaurant location
Ongoing Support
Ike's Love & Sandwiches provides ongoing support to its franchisees through several channels. This includes periodic inspections and evaluations of the restaurant, review of annual advertising plans, and regular advice and written materials, such as updates to the Operations Manual, concerning management and operational techniques. The franchisor also conducts training programs and seminars, some of which may be mandatory for specific restaurant personnel. Additional on-site training can be provided upon the franchisee's request or if deemed necessary by the franchisor, for which the franchisee pays a per diem fee plus expenses. Ike's Love & Sandwiches administers the Worldwide Creative Marketing Fund, handles indemnification for authorized use of its trademarks, and may hold annual franchisee meetings (for which attendees pay fees and expenses).
Franchise Requirements
Ideal Candidate Profile
Ike's Love & Sandwiches is looking for franchisees whose Designated Controlling Principal is a minimum 10% equity owner and responsible for general oversight of the restaurant. While this principal cannot be the day-to-day General Manager or Manager, the franchise requires a minimum of one General Manager and two Managers who will devote full-time effort to daily operations. These managers, who may be principals themselves, must have at least three years of previous restaurant management or ownership experience, meet the franchisor's educational and business criteria, be individually acceptable, and complete all required training.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
3
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Ike's Love & Sandwiches defines its single franchise unit territories by a minimum radius: 1/4 mile in urban settings and two miles in suburban settings. The precise boundaries are determined after the specific restaurant location has been accepted.
Staffing Notes
Ike's Love & Sandwiches requires franchisees to consistently employ a minimum of one General Manager and two Managers, who must dedicate their full time and reasonable efforts to the day-to-day operations of the restaurant. These managers must satisfy the franchisor's educational and business criteria, be individually acceptable, and complete all training requirements. A Principal can serve as a General Manager or Manager if they have at least three years of previous restaurant management or ownership experience, though the Designated Controlling Principal cannot hold these roles. If a manager position becomes vacant, a qualified replacement must be designated within 60 days. Franchisees are also responsible for employing additional personnel as needed for the restaurant's operation and management. All General Managers, Managers, and other designated employees must obtain and maintain food safety and handling certifications (e.g., ServSafe) and alcohol awareness certification (e.g., TIPS) if the restaurant offers alcoholic beverages.