Broken Yolk Cafe Franchise Cost, Revenue & Review 2026
- Investment
- $560K – $1.6M
- Disclosed sales
- $2.7M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (5)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Broken Yolk Cafe is a full-service franchise serving breakfast and brunch classics like omelets, pancakes, and skillets. Franchisees run the cafes, managing the kitchen, table service, and staffing.
FranchiseVerdict summary · 2026
A Broken Yolk Cafe franchise requires a total initial investment of $560K – $1.6M, including a $20K franchise fee and an ongoing 4.5% royalty[2]. Per the 2026 FDD, average unit revenue was $2.7M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $560K – $1.6M
- 25th pct Service Resta…
- Avg gross sales
- $2.7M
- 12th pct Service Resta…
- Royalty
- 4.5%
- 6th pct Service Resta…
- Units
- 41
- 26th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $560K – $1.6M including a $20K franchise fee, 4.5% ongoing royalty.
- RETURNSAverage unit revenue of $2.7M/year (median $2.7M).
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- GROWTHSystem growing at 17.6% CAGR over 3 years with 41 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BYC Franchising, LLC
- Parent company
- BYC, Inc. (affiliate/trademark licensor)
- FDD Item 1, page 11 of the 2026 FDD
- Incorporated in
- California
- HQ
- 1851 Garnet Avenue, San Diego, CA 92109
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $5.6M
- vs $5.9M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- BYC
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- John Gelastopoulos
- Headquarters
- California
- Founded
- 2010
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 62% above the typical full-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $20K | |
| Training Fee and Pre-Opening Support | $25K | $25K | |
| Additional Training Fee | $0 | $1K | |
| Travel and Living Expenses While Training | $0 | $18K | |
| Building and Improvements | $165K | $650K | |
| Utility Deposits | $5K | $12K | |
| Signs (indoor and outdoor) | $18K | $23K | |
| Equipment, Fixtures and Furnishings | $165K | $600K | |
| POS System | $35K | $40K | |
| Opening Inventory and Uniforms | $19K | $35K | |
| Menus | $800 | $2K | |
| Business Licenses | $2K | $4K | |
| Insurance | $5K | $12K | |
| Opening Advertising | $5K | $5K | |
| Architect/Designer | $6K | $31K | |
| Additional Funds - First 3 months of operations | $90K | $160K | |
| Total initial investment | $560K | $1.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $560K – $1.6M
- Top 40% of category vs category
- Liquid capital req'd
- $90K – $160K
- Top 40% of category vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- 4.5%
- typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $100 |
| Training fee | $25K |
| Transfer fee | $5K |
| Renewal fee | $10K |
| Inventory (initial) | $19K – $35K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 67% above the full-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Broken Yolk Cafe until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.2M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Broken Yolk Cafe unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $2.7M
- Per unit, per year
- Median gross sales
- $2.7M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 38 outlets
- vs category median 18 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 7 / 10
- vs category median 3 / 10 · above
Compared against 801 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.7M/year in gross sales. Revenue-to-investment ratio: 2.4x.
Fee burden
Total ongoing fee load of 6.0% (near the Full-Service Restaurants median).
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 17.6% CAGR over 3 years across 41 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Broken Yolk Cafe Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 41
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- +17.6%
- Net unit change over 3 years
- 3-yr CAGR
- +17.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Illinois
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
38 current owners across 4 states.
- CA 27
- NV 5
- AZ 4
- TX 2
Counts only, from the list the franchisor prints in Item 20; 5 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $7.1M
- Median loan
- $1.3M
- 50th percentile
- Charge-off rate
- Under 10 loans (5)
- Insufficient SBA coverage: 5 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (5)
- 5-yr charge-off
- Under 10 loans (5)
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Broken Yolk Cafe presents moderate-to-cautionary risk: stagnant unit growth, regulatory history, high capital requirements, and non-transparent profitability metrics warrant deep validation before commitment.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One Item 3 matter: In the Matter of the Commissioner of Financial Protection and Innovation v. BYC, Inc. and BYC Franchising, LLC (California DFPI). Affiliate BYC, Inc. sold 3 unregistered California franchises 2005-2008 without required FDD; settled by Consent Order effective July 15, 2021 with $10,000 administrative penalty plus $5,000 attorney's fees/costs and a desist-and-refrain order. No other litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 75 / 100 verdict
- 01MINORStagnant unit growth of only 2.6% YoY with 41 units indicates mature/declining system with minimal expansion
- 02MINOR2021 DFPI Consent Order reveals historical compliance failures (unregistered franchises 2005-2008) and regulatory scrutiny
- 03MED20-year term locks franchisees into long commitment with limited exit flexibility in slow-growth system
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | San Diego, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
One Item 3 matter: In the Matter of the Commissioner of Financial Protection and Innovation v. BYC, Inc. and BYC Franchising, LLC (California DFPI). Affiliate BYC, Inc. sold 3 unregistered California franchises 2005-2008 without required FDD; settled by Consent Order effective July 15, 2021 with $10,000 administrative penalty plus $5,000 attorney's fees/costs and a desist-and-refrain order. No other litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 116 hrs
- Training location
- San Diego, California
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
43 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Broken Yolk Cafe franchise?
The total investment to open a Broken Yolk Cafe franchise ranges from $560K – $1.6M, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Broken Yolk Cafe franchise owners earn?
According to Item 19 of the Broken Yolk Cafe FDD, the average gross sales per unit is $2.7M. The median is $2.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Broken Yolk Cafe?
Broken Yolk Cafe is franchised by BYC Franchising, LLC. Its parent company is BYC, Inc. (affiliate/trademark licensor). Source: FDD Item 1, 2026 filing.
What is Item 19 in the Broken Yolk Cafe FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Broken Yolk Cafe FDD and qualifies whose outlets they describe.
What is Broken Yolk Cafe's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Broken Yolk Cafe (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Broken Yolk Cafe franchise locations are there?
As of their most recent FDD filing, Broken Yolk Cafe has 41 total units in the United States, including 40 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is Broken Yolk Cafe a good franchise to buy?
FranchiseVerdict rates Broken Yolk Cafe as a A-grade franchise with a verdict score of 75 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.