Bottom line
- Total investment $275K – $500K including a $38K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.4M/year.
- Rated MODERATE with a risk score of 59/100. 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 EggBred unit return on the cash you put in?
Unlevered ROIC · per unit
58%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 EggBred units return on equity?
Equity IRR · 5-yr
35.8%
4.62× MOIC
Year-1 DSCR
2.29×
EBITDA ÷ debt service
Equity required
$4.8M
on $14.0M purchase
Total debt
$9.2M
SBA $5.0M + senior + seller note
Overview
About
EggBred franchisees operate egg-based food service concepts (likely breakfast/brunch-focused quick service or casual dining). Day-to-day operations involve food preparation, inventory management, customer service, and retail sales in a territory-protected location. Franchisees benefit from proprietary recipes, operational systems, and brand marketing, but depend entirely on corporate support in a 3-unit system.
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 · 18 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
EggBred presents HIGH RISK due to going concern status, a microscopic 3-unit system with unknown growth, a $1M+ fraud-related judgment in 2024, and complete opacity on actual franchisee net profitability.
Score breakdown · what drove the 59 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial distress or viability questions at corporate level
- 02MINOROnly 3 units system-wide with unknown growth trajectory — extremely small, unproven system with no expansion momentum
- 03HIGHMaterial litigation: $1.007M judgment rendered April 2024 against third-party defendants including sales broker, involving fraud and securities violations — raises questions about corporate integrity and sales practices
- 04MEDNet Income not disclosed — lack of transparency on actual profitability; cannot validate 5% royalty burden against real earnings
- 05MINORHigh investment-to-unit ratio — $275K-$499K entry cost for a 3-unit system suggests poor economies of scale and elevated per-unit risk
- 06MINORNo Item 19 (earnings claims) provided — cannot verify that $1.4M average revenue translates to acceptable ROI after royalties, COGS, labor, and overhead
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
45 numbers
One-time purchase · CSV download · Validation questions included
FDD download
EggBred · FDD (2025) PDF