Eggs Up Grill
Eggs Up Grill offers breakfast and lunch items in family-friendly restaurants. Known for its straightforward franchise investment range of $752,500 to $988,000, it operates in the quick-service restaurant sector.
About Eggs Up Grill
Eggs Up Grill franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an Eggs Up Grill Restaurant is estimated to be between $752,500 and $988,000. This includes a Development Fee that depends on the number of restaurants you agree to develop under the Area Development Agreement [p.1].
What is the initial franchise fee?
The initial franchise fee is $45,000, which is paid in a lump sum when signing the Franchise Agreement. This fee is fully earned upon execution of the agreement and is not refundable [p.11, p.76].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of weekly Gross Sales [p.76]. This percentage applies after the initial setup and pre-opening services, focusing on the operation phase where continuous fees are due [p.190].
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?
Yes, you can sell or transfer your franchise, but it requires approval from the franchisor for certain transfers. You must pay a transfer fee, which is either $22,500 or 50% of the current initial franchise fee if the transfer involves the majority ownership interests, or reimbursement of expenses and training costs if it's a minority interest transfer [p.103]. The franchisor can refuse to permit transfers for good cause, as defined in the FDD [p.5].
On what grounds can the franchisor terminate the agreement?
According to [p.5], the franchisor can terminate the franchise agreement prior to its expiration only for good cause, which includes your failure to comply with any lawful provision of the Franchise Agreement and your inability to cure 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?
To qualify as a franchisee, you must demonstrate sufficient liquidity based on your representations and the franchisor's assessment of your levels of liquidity at the Effective Date [p.137]. Additionally, you are required to maintain sufficient working capital reserves to comply with obligations under the agreement and pay vendors timely [p.74]. The franchisor may also set specific liquidity thresholds from time to time that you must meet [p.137]. This isn't specified in the excerpts regarding minimum net worth requirements directly related to your personal financial situation, but the franchisor will consider your overall financial health [p.130].
Do I get an exclusive or protected territory?
No, you do not get an exclusive or protected territory. The Search Area is merely a geographic region where you must locate your restaurant, and it does not provide exclusivity [p.124]. You may face competition from other franchisees as well as outlets owned by the company or competitive brands controlled by them [p.35, p.80].
What training and ongoing support does the franchisor provide?
The franchisor provides training and opening support based on the number of restaurants being opened. For the first or second restaurant, three or more trainers are sent for one week. For subsequent restaurants, only one trainer is provided under similar conditions, with additional costs for travel and per diem expenses borne by the franchisee [p.78]. This support includes training and opening assistance, but the specifics can vary based on the franchisor's discretion [p.78].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, as of December 31, 2023, there were 70 franchised restaurants operating under the Eggs Up Grill name. However, the number of closed or terminated franchises is not specified in these excerpts. [p.173] and [p.188] provide information on the number of open franchised restaurants for the years 2023 and 2022 respectively, but do not mention any closures or terminations.
Does the franchisor share any financial performance or earnings information?
The franchisor, EUG Franchising, LLC, does not make any financial performance representations [p.56]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.56]. Additionally, the franchisor is permitted to provide financial performance information under certain conditions as outlined in Item 19 of the FDD [p.49], but this must be included in the disclosure document and have a reasonable basis [p.49].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the menu items and other products and services that the franchisor has expressly approved in writing. You must operate your restaurant in strict conformity with the methods, standards, and specifications provided in the Manuals and as otherwise required in writing by the franchisor [p.41]. Regarding supplies, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3].