Egg N Joe
Egg N Joe offers breakfast and lunch items through Elmer's Breakfast Lunch Dinner and Egg N' Joe restaurants. Known for casual dining with a focus on breakfast options, it operates in the quick-service restaurant sector.
Egg N Joe franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an Elmer's Breakfast Lunch Dinner ® Restaurant or an Elmer's Kitchen Breakfast Brunch Mimosa ranges from $1,071,950 to $3,350,425. For an Egg N' Joe ® Restaurant, the range is from $741,450 to $1,689,800. [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000 and it is payable when you sign a Franchise Agreement [p.19, p.11, p.114]. This fee is nonrefundable [p.114].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of Gross Sales, paid weekly [p.114]. For advertising fees, you or an approved affiliate must spend up to 1% of your Gross Sales each calendar quarter on advertising and promotion, with detailed accounting required monthly [p.30].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your franchise, but it comes with conditions. You or the transferee must pay a transfer fee equal to 50% of the current initial franchise fee [p.135]. However, if the transfer is due to the death of a spouse and the surviving spouse takes over, no transfer fee is required provided the transfer adheres to the terms specified in Section 12 of the agreement [p.135].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if certain conditions are not met, as specified on [p.164]. This includes compliance with terms and conditions by the closing date, ensuring that obligations to pay money owed to Franchisor under the Seller Franchise Agreement or the guaranty prior to the Closing Date are fulfilled, and adhering to post-termination restrictive covenants, indemnification, notice provisions, and other surviving terms.
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor evaluates a prospective franchisee's or developer's net worth, overall business experience, and length of experience in the franchise system to determine if they have sufficient working capital reserves or liquidity. As of the date of this Disclosure Document, no specific minimum levels are established; however, you must maintain sufficient liquidity to meet your obligations under the Franchise Agreement and Area Development Agreement [p.9, p.112, p.76].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The franchisor retains the right to engage in activities that may compete with your restaurant [p.109]. You may face competition from other franchisees and outlets owned by the franchisor [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for the grand opening of each Restaurant, with up to one week of pre-opening and post-opening assistance at no additional cost for the first or second Restaurant opened by you or your Affiliates. For subsequent Restaurants, more limited opening assistance may be provided, but you will be responsible for any additional costs [p.116]. Ongoing training courses are required, with attendance not exceeding five full days per year [p.34]. Additionally, all franchise owners must attend annual conferences and mid-year business meetings [p.34].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, in the 2022 fiscal year, two franchised Elmer's Restaurants located in Oregon and Washington closed. However, the number of current franchised outlets is not specified in these excerpts. [p.57]
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any representations about future financial performance for new franchises [p.55]. However, if a prospective franchisee is purchasing an existing restaurant, they may receive actual records of that specific location's performance [p.55]. The franchisor can provide financial performance information only if there is a reasonable basis and it is included in the disclosure document [p.50], or if the information pertains to an existing outlet being purchased [p.55].
What am I restricted to selling, and where must I buy supplies?
You are required to purchase or lease certain items from suppliers designated by the franchisor, which may be more expensive than other options [p.3]. Additionally, you must direct a significant portion of your initial investment and ongoing expenditures towards products and services restricted by the franchisor [p.22]. This isn't specified in the excerpts regarding what specific products or services you are restricted to selling.