Another Broken Egg Cafe
Another Broken Egg Cafe offers casual dining with breakfast-focused menu items. Known for its diverse egg dishes, the franchise operates in the quick-service restaurant sector.
Another Broken Egg Cafe franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation under a development agreement for one Cafe is $92,000 to $149,500. This includes at least $60,000 that must be paid to the franchisor or its affiliate [p.2].
What is the initial franchise fee?
The initial franchise fee is $40,000 [p.13]. This fee is uniform and not refundable under any circumstances [p.122, p.125, p.231]. However, its payment can be deferred until the business opens or all of ABEA's pre-opening obligations are completed, depending on whether it's the first cafe developed under the schedule [p.122, p.181].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a continuing non-refundable weekly fee of 5% of gross sales, paid through electronic transactions. Advertising fund fees are also based on a percentage of franchisee gross revenues and are recognized as franchisee sales occur. [p.212, p.217]
How long is the initial franchise agreement, and can I renew it?
The initial term and renewal terms of the franchise agreement are not specified in the provided excerpts. However, if Franchisee continues to operate after the initial or any renewal term without exercising its option to renew and ABEA does not object, Franchisee will be deemed to be operating on a month-to-month basis [p.79]. For formal renewal, Franchisee must execute ABEA's then-current form of franchise agreement, which may have different economic terms including the payment of a $10,000 renewal fee for each renewal term [p.78].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer ownership of your franchise, but it requires good cause. The franchisor may refuse to permit such a transfer without valid reasons [p.6]. Additionally, there are associated fees for transferring a franchise unit to another franchisee [p.211].
On what grounds can the franchisor terminate the agreement?
According to [p.6], a franchisor can terminate a franchise prior to expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and curing such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for franchisees to qualify. However, it does state that the transferee must have sufficient equity capital to operate the Cafe [p.99] and should meet adequate capital and organizational facilities as warranted by ABEA [p.76].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. According to [p.35], you may face competition from other franchisees, outlets owned by the company, and competitive brands controlled by them. Additionally, [p.133] states that no rights to any territory are granted except as specified in the Franchise Agreement or this document.
What training and ongoing support does the franchisor provide?
The franchisor provides on-site training and assistance including kitchen training, purchasing and inventory management, product promotion, merchandising, bookkeeping, sales analysis, and other operational matters [p.34]. Additionally, they offer pre-opening training scheduled based on the projected opening date of the Cafe [p.34], and may provide a Lead Trainer at their expense for up to 9 days before opening and during the first 3 days of business [p.34]. For operations training, ABEA is responsible for instructors' costs but Franchisee covers travel, lodging, and other expenses [p.80]. The franchisor also offers supplemental trainers for a fee if requested [p.34]. However, they do not provide guidance or training on employee relations issues such as hiring or termination practices, wages, working conditions, or hours [p.34, p.80].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide specific information on the number of franchised outlets that have closed or been terminated. This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised Cafes, except for providing actual records of an existing outlet if you are purchasing one. However, as of December 29, 2024, the franchisor includes financial performance information from 52 out of 61 franchise-operated Cafes in the disclosure document [p.48, p.50]. If you need written substantiation for this information, you can request it upon reasonable request [p.50].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only the products and services that the franchisor authorizes through the Manual, menus, or updates provided. You may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.4].