Elmers
Elmer's Breakfast • Lunch • Dinner offers breakfast and lunch restaurants with Egg N' Joe and Elmer's Kitchen options. Known for casual dining, this franchise requires significant investment. Part of the quick-service restaurant industry.
Elmers 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 is estimated to be $1,520,750 to $4,672,125. For an Egg N' Joe® Restaurant or an Elmer's Kitchen Breakfast • Brunch • Mimosas® Restaurant, the total initial investment necessary is estimated to be $1,146,750 to $3,881,500. [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000 and it is payable when you sign the Franchise Agreement [p.19, p.11, p.3, p.114]. This fee is nonreducible and must be paid in one lump sum upon signing [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, you are required to spend up to 1% of your Gross Sales each calendar quarter for local advertising and promotion [p.30], in addition to a mandatory $2,000 grand opening marketing program [p.31].
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?
You can sell or transfer your franchise, but it requires payment of a transfer fee equal to 50% of the current initial franchise fee [p.136]. However, if the transfer is to your surviving spouse upon death, no transfer fee is due under the terms specified [p.136].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific grounds for the franchisor to terminate the franchise agreement.
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor evaluates a franchisee's or developer's net worth, overall business experience, and length of experience in the franchise system to determine sufficient working capital reserves or liquidity [p.9]. As of the date of this Disclosure Document, no specific minimum levels are established; however, you must maintain sufficient working capital reserves at all times as necessary and appropriate to comply with your obligations under the Agreement [p.112] and ensure sufficient liquidity throughout the term of the agreement [p.76].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, and other channels of distribution or competitive brands that the company controls [p.37, p.35, p.109].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for the grand opening of a new restaurant, covering up to one week before and after the opening, at no additional cost if it is the first or second Restaurant opened by you or your affiliates. For subsequent Restaurants, more limited opening assistance may be provided. Ongoing support includes attendance at various training courses and annual conferences, with no more than five full days of required attendance per year. [p.35, p.108, p.116]
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, as of December 29, 2024, there were 7 franchised Elmer's Restaurants. One franchised restaurant ceased operations during the 2024 fiscal year [p.53]. However, the total number of closed or terminated outlets is not specified in these excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can share actual or potential financial performance of its outlets if there is a reasonable basis for the information [p.52]. However, they do not make representations about future financial performance or past financial performance of company-owned or franchised outlets [p.55], and this includes avoiding any statements, promises, or assurances concerning the likelihood of success [p.208].
What am I restricted to selling, and where must I buy supplies?
You are generally prohibited from operating a similar business during the term of the franchise [p.3]. For supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3]. Specifically, you must purchase coffee and tea from the franchisor's designated vendor, who also provides brewing equipment and maintenance services at no additional cost [p.23]. Additionally, soft-drink supplies must come from their designated vendor, with up to three maintenance calls per year provided for free [p.23].