- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$104K - $596K
- Units as of 2022
31 6% over 3 years
Harold “Groucho” Miller grew up in a Philadelphia orphanage where he dreamed up various recipes for salads, coleslaw, and sandwich dressings. In 1941, he came to Columbia, South Carolina, where Miller began Groucho’s Deli after earning the nickname, ‘Groucho.’
Over the years, Groucho’s Deli has continued serving sandwiches made of quality meat cuts and cheeses, with sides of their signature salad dressings, potato salads, and coleslaw. The restaurant chain has carved a niche for itself and began franchising in 2001.
Since beginning to franchise, Groucho’s Deli has opened over two dozen locations in the United States.
Why You May Want To Start a Groucho’s Deli Franchise
A good fit for Groucho's Deli would be a franchisee who's ready to carry the brand vision with the same passion as Miller himself. If you're all about quality and producing delicious menu items like ‘Groucho’ was, then you may want to stick around. Good business acumen and great people skills make great additions to applicant qualities, as well.
As you decide if opening a Groucho’s Deli franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if this franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
What Might Make a Groucho’s Deli Franchise a Good Choice?
Groucho’s Deli lays its claim to fame to what the company has called its “80-Year proven performance” since its inception back in 1941. Groucho’s Deli may require minimal space out of which it operates, which could translate to lower initial setup costs. Coupled with its use of quality products, opening a Groucho’s Deli may be tempting.
To be part of the Groucho’s Deli franchise team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a Groucho’s Deli Franchise
Are you ready to become part of the Groucho’s Deli team? After you apply, the franchising team will be in touch with you to move on to the next step of the process. Once you sign the franchise agreement, it typically takes several months to open your location.
As it is with any other business opportunity, you may have many questions about the process of owning a franchise, the daily operations, and so on. Be sure to note your questions and field them to the franchising team members. It would also be a good idea to seek out existing franchisees or mingle with them on the discovery day to find out as much as you can about owning a Groucho's Deli franchise.
If awarded a franchise, franchisees receive a great deal of support from the Groucho’s Deli brand throughout the franchising process. In addition to pre-opening training, franchisees receive support through brand awareness, marketing, research, and construction. They also receive hands-on training and continued support after their franchise location has opened.
About Groucho's Deli
|Franchising Since||2001 (22 years)|
|# of employees at HQ||10|
This company is offering new franchisees in the following US states: Florida, Georgia, North Carolina, South Carolina, Tennessee, Virginia
|# of Units||31 (as of 2022)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Groucho's Deli franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
|$18,000 - $28,000|
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
|$104,333 - $596,243|
Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
Term of Agreement
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|Third Party Financing||Groucho's Deli has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
|On-The-Job Training||229-309 hours|
|Classroom Training||49 hours|
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||Yes|
Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
|# of employees required to run||12|
Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Groucho's Deli? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Groucho's Deli landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Groucho's Deli ranked on other franchise lists? Find out below.
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