Another Broken Egg Cafe
Bottom line
- Total investment $897K – $1.6M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.9M/year (median $1.8M).
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 34 loans (below the industry average).
- System growing at 21.7% CAGR over 3 years with 97 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Another Broken Egg Cafe unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Another Broken Egg Cafe units return on equity?
Equity IRR · 5-yr
30.8%
3.83× MOIC
Year-1 DSCR
2.62×
EBITDA ÷ debt service
Equity required
$7.7M
on $18.2M purchase
Total debt
$10.5M
SBA $5.0M + senior + seller note
Overview
About
Another Broken Egg Cafe franchisees operate casual breakfast and brunch restaurants featuring egg-focused dishes, coffee, and comfort food in a fast-casual or casual dining format. Day-to-day operations involve managing kitchen staff, FOH service, inventory, food costs (typically 28-35% in breakfast QSR), and maintaining brand consistency across menu items, ambiance, and customer experience in individual cafe locations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Another Broken Egg presents moderate-to-cautionary risk due to missing net income disclosure, false going concern status, and aggressive expansion that may outpace unit profitability validation.
Score breakdown · what drove the 42 / 100 rating
- 01MEDNet income not disclosed in Item 19 — inability to verify profitability claims or benchmark ROI against $897k-$1.57M investment
- 02HIGHGoing concern status is FALSE — suggests potential financial instability or undisclosed restructuring at corporate level
- 03MINORHigh unit growth (19.1% YoY) may indicate aggressive recruitment masking underlying unit-level performance issues
- 04MEDRoyalty structure (5%) combined with non-disclosed net income makes true franchise economics opaque
- 05HIGHNo litigation disclosed but going concern flag suggests latent legal or operational disputes
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
56 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Another Broken Egg Cafe · FDD (2024) PDF