How To's
TRUE Cost To Own Another Broken Egg Cafe
Another Broken Egg Cafe is a viable option to franchise for entrepreneurs who dream of owning a cafe that already has a tried and tested system. If you’ve probably wondered about Another Broken Egg Cafe franchise cost, this article will give you the lowdown on the amount you’ll need as well as the process of getting your own cafe up and running.
Franchise Description
But before we get down to Another Broken Egg Cafe franchise cost, let’s step back and review why a lot of aspiring franchisees are interested in this business. The cafe chain is headquartered in Orlando, Florida. Though the venture began in 1996, it wasn’t until 2004 that their franchise business came in full throttle.
Today, Another Broken Egg of America Franchising, LLC franchises the cafes with over 69 units in 12 states across the US. Customers patronize the cafe for its breakfast, brunch, and lunch menu that includes pancakes waffles, and French toast, egg and omelet dishes, sandwiches, salads, beverages, and other items. Cafes offer their food for dine-in and takeaway service. In addition to that, there are also cafes that provide catering or home-delivery.
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Training Overview
Along with Another Broken Egg Cafe franchise cost, applicants must also invest their time and effort during the training phase. In fact, the training for franchise operations consists of several parts:
- As soon as possible after signing the franchise agreement, the owner must attend an orientation training. The franchisee may only choose a site location after this training.
- The initial management course will take six weeks, 9-10 hours a day with homework assignments.
- The franchisee should also attend a four-day Management Certification course at the Florida headquarters. This training is composed of lectures, structured testing, and evaluation of skills.
- The owner, manager, and kitchen manager will complete the initial operations training 30 days before opening the cafe.
- The franchisor will send representatives to the cafe location to conduct on-site training and assistance when the cafe opens.
Aside from the courses required to start the cafe, the franchisor may also hold additional training from time to time. This extra training aims to upgrade the knowledge and skills of the owner, manager, or staff.
Territory Granted
Franchisees will have a Designated Trade Area equal to a two to a five-mile radius around the approved site. The radius will depend on the topography and delineation of the city and as agreed between the two parties. The franchisor will not locate or permit new franchisees within an existing Designated Trade Area during the agreement term.
Obligations and Restrictions
Alongside Another Broken Egg Cafe franchise cost, cafe owners must comply with obligations agreed upon between the two parties. For instance, the franchisor recommends that the franchisee personally supervises the cafe. It’s also best if the owner or an operating partner devotes full-time efforts to the business during operation hours.
Those who had access to training provided by the franchisor should sign non-disclosure and non-competition agreements. In addition to that, owners may not use the cafe premises for other purposes other than the franchise itself.
The initial franchise term is ten years. Franchisees may renew for another ten years if they remain in good standing. The franchisor doesn’t provide direct or indirect financing and doesn’t guarantee a franchisee’s lease note, or obligation.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee | $50,000 | $50,000 |
| Rent, Deposits, Licenses and Permits | $13,600 | $44,500 |
| Leasehold Improvements | $300,000 | $675,000 |
| Utility Deposits | $2,500 | $7,500 |
| Cafe Furniture, Fixtures and Equipment | $75,000 | $225,000 |
| Point of Sale Computer/Cash Register System, Software, Training and Installation | $16,500 | $29,500 |
| Signage | $6,000 | $30,000 |
| Initial Inventory | $8,000 | $19,500 |
| Travel, Living and Salary Expenses While Training | $12,000 | $37,500 |
| Insurance | $8,000 | $20,000 |
| Grand Opening Advertising | $10,000 | $10,000 |
| Legal and 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) | $528,600 | $1,210,500 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty | 5% of Gross Sales. |
| Advertising Fund Fee | Up to 2% of Gross Sales; currently 1% of Gross Sales. |
| Development Schedule Extension Fee | $7,500 per each café for which an extension is requested. |
| Regional Marketing Fee | If applicable, up to 2% of Gross Sales. |
| Local Advertising Expenditures | Minimum of 2% of Gross Sales. |
| Design Drawings | $5,000 |
| Grand Opening Advertising Campaign | Minimum of $10,000. |
| Training/Conferences and Conventions | The franchisee’s food, lodging, travel and other expenses; Additional training fee = minimum of $2,500 per person. |
| Special Field Assistance | Currently $200 per person, per day, plus the franchisor’s out-of-pocket expenses. |
| 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 | $17,500 if transferee is not a current ABEA franchisee or $4,500 if transferee is a current ABEA franchisee. |
| Audit Fee | Expenses incurred by the franchisor in performing audit. |
| Transfer Fee | $17,500 if transferee is not a current ABEA franchisee or $4,500 if transferee is a current ABEA franchisee. |
| 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 | $5,000 |
| Liquidated Damages | 5% of average Gross Sales from preceding 3 years multiplied by remaining years of Agreement and discounted to present value at 8%. |
Did You Know?
Here are a few fun tidbits about the cafe you’d want to franchise:
- The name of the original cafe in Old Mandeville, Louisiana, is Broken Egg Cafe. It features a cozy atmosphere comparable to a “century-old cottage,” made charming with barge wood. Bubbling fountains and waterfalls greeted guests at the local eatery. Little did patrons know that the cafe will grow into a nationwide chain!
- The second cafe aptly named Broken Egg Cafe opened in Destin, Florida in 1998. A few years later, the company received 1,500 guest inquiries asking how they can open an Another Broken Egg Cafe branch in their hometowns. Safe to say, the franchise business makes a living due to popular demand.
- Entrepreneur Magazine hailed Another Broken Egg Cafe as one of the “Top 500 Franchise Businesses in America” in 2013. This only goes to show how far the business has come just a decade after it started its franchise business.
- The cafe’s menu is a masterpiece of Chef Jason Knoll. According to him, the menu stands out because it’s comfortable in its southern roots and they’re not apologetic about their flavors. The dish creation he takes most pride out of? Brisket Benedict! That’s jalapeño Cheddar cornbread waffle topped with brisket, poached eggs, hollandaise, drizzled with a spicy BBQ sauce, and chopped green onions. Chef Jason has every right to be proud!
The cafe links its success to its philosophy, “Nothing Short of Right is Right.” So, if you’re ready to take on the challenge of committing to good food and customer satisfaction, this franchise could be for you.