Broken Yolk Cafe
Formerly known as Backyard Carryout
Bottom line
- Total investment $560K – $1.6M including a $20K franchise fee, 4.5% ongoing royalty.
- Average unit revenue of $2.7M/year (median $2.8M).
- Rated STRONG with a risk score of 45/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
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 Broken Yolk Cafe unit return on the cash you put in?
Unlevered ROIC · per unit
37%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Broken Yolk Cafe units return on equity?
Equity IRR · 5-yr
26.6%
3.25× MOIC
Year-1 DSCR
3.10×
EBITDA ÷ debt service
Equity required
$13.9M
on $27.0M purchase
Total debt
$13.1M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate casual breakfast and brunch-focused cafes featuring American comfort food, with daily responsibilities including kitchen management, food cost control, staff scheduling, and customer service. The business model emphasizes high-volume, lower-margin dining with operational complexity around food preparation, inventory management, and seasonal demand fluctuations typical of full-service restaurants.
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 · 5 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
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.
Score breakdown · what drove the 45 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $2.7M average revenue — suggests underperformance or inconsistency across units
- 02MINORStagnant unit growth of only 2.6% YoY with 41 units indicates mature/declining system with minimal expansion
- 03MINOR2021 DFPI Consent Order reveals historical compliance failures (unregistered franchises 2005-2008) and regulatory scrutiny
- 04MEDHigh investment range ($560K-$1.6M) paired with undisclosed profitability creates uncertainty on ROI and break-even timelines
- 05MED20-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
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
43 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Broken Yolk Cafe · FDD (2026) PDF