Another Broken Egg Cafe Franchise Costs, Fees & FDD

Year Business Began: 1996

Franchising Since: 2005

Headquarters: Orlando, Florida

Estimated Number of Units: 105

Franchise Description: Another Broken Egg of America Franchising, LLC is the franchisor. Another Broken Egg Cafes are distinctive, cafe-style restaurants featuring specialty breakfast, brunch and lunch items consisting of egg and omelet dishes, gourmet waffles, pancakes and French toast, salads, sandwiches, beverages and related menu items for eat-in and take-away service and, where practical, catering and/or home-delivery. The franchisor offers development agreements and franchise agreements to qualified individuals and entities wishing to operate cafes.
Training Overview: At least 30 days prior to the scheduled opening date of the cafe, the required trainees must attend and complete, to the franchisor’s satisfaction, the management training. Management training is a minimum of four to six weeks, depending on whether the trainee is an internal promotion or an external hire, averaging 9-10 hours per day plus additional homework assignments. Franchisees must attend and complete a ServSafe or similar food safety certification course also. Franchisees may attend a two-day training course at the franchisor’s Cafe Support Center in Florida that will consist of classroom instruction and training with each department of the support center. After franchisees and their management staff have successfully completed the management training, the franchisor will send one ABEA Lead Trainer, at no cost to franchisees, for on-site training and assistance when they open their cafe. Franchisees and their employees (including any person subsequently acting as the manager of the café) must attend and successfully complete, to the franchisor’s reasonable satisfaction, such additional training programs as the franchisor may require from time to time.

Territory Granted: Under the Franchise Agreement, franchisees receive the right to operate one café within a designated trade area that consists of a designated mile radius around the approved location. The radius of the designated trade area will generally be between one and three miles, but in some instances, it may be a smaller radius or a city delineation. As long as franchisees comply with the terms of the Franchise Agreement and all other agreements with the franchisor or its affiliates, the franchisor will not establish or authorize anyone else to establish another cafe under the Another Broken Egg system in the designated trade area during the term of the Franchise Agreement.

Obligations and Restrictions: The café must be operated either by the franchisee or by a designated operating partner. The franchisor recommends that franchisees personally supervise the operation of the café. At least one beneficial owner of the securities of the franchisee and any operating partner must attend and successfully complete the operations training. Either franchisees or their operating partner must devote his or her full time and energy during business hours to the supervision and management of the café. The person directing and supervising the operation of the franchised business at the café, any other person that received or will have access to the training and all holders a beneficial interest in the franchisee and of all entities that hold more than a 20% beneficial interest in the ownership interests in the franchisee must sign the non-competition and non-disclosure agreements the franchisor requires. Franchisees must offer and sell all products and services that the franchisor authorizes in the manual, menus or updates that the franchisor sends to them. In addition, franchisees may not use the premises of the café for any purpose other than the operation of an Another Broken Egg Cafe.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they may renew for two additional 10-year terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$40,000	$40,000
Opening Team Training Fee	$0	$20,000
Rent, Deposits, Licenses and Permits	$14,900	$47,500
Leasehold Improvements	$450,000	$900,000
Utility Deposits	$2,500	$7,500
Cafe Furniture, Fixtures and Equipment	$175,000	$350,000
Point of Sale Computer/Cash Register System, Software, Training and Installation	$35,000	$45,000
Signage	$15,000	$30,000
Initial Inventory	$8,000	$19,500
Travel, Living and Salary Expenses While Management Training	$12,000	$37,500
Pre-Opening Team Expenses	$0	$5,000
Insurance	$8,000	$20,000
Grand Opening Advertising	$15,000	$15,000
Legal & Accounting	$2,000	$12,000
Additional Funds – 3 months	$25,000	$50,000
ESTIMATED TOTAL (excluding real estate and construction of building on leased ground)	$802,400	$1,599,000

 
Other Fees

Type of Fee	Amount
Royalty	5% of gross sales.
National Advertising Fund Fee	Up to 3% of gross sales; currently 1.75% of gross sales.
Development Schedule Extension Fee	$10,000 per each café for which an extension is requested.
Regional Marketing Fund Fee	If applicable, up to 1.5% of gross sales.
Additional Training/Conferences and Conventions	The cost of the franchisee’s food, lodging, travel and other expenses; Additional training fee = minimum of $3,000 per person.
Special Field Assistance, Including Visits to Cure Operational Issues	Currently $200 per person, per day, plus the franchisor’s out-of-pocket expenses.
Mystery Shopper	Currently $80 - $130 per shop.
UL Everclean	Currently $215 per assessment.
Late Fee	$250
Interest Charge on Late Payments	All overdue amounts will bear interest until paid at the lesser of 1.5% per month or the highest rate of interest allowed by law.
Transfer Fee	$20,000
Audit Fee	Expenses incurred by the franchisor in performing audit.
Monthly Financial Report Deviation Fee	Maximum of $20 per hour.
QSA Audit Fee	Expenses incurred by the franchisor in performing QSA audit.
Insurance Coverage Reimbursement	The franchisor’s actual costs, interest on the advanced funds and the administrative expenses.
Indemnification	The franchisor’s actual cost.
Renewal Fee	$10,000
Liquidated Damages	5% of average gross sales from preceding 3 years multiplied by remaining years of agreement and discounted to present value at 8%.

The above information has been compiled from the FDD of Another Broken Egg Cafe. Year of FDD: 2025.
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