EggBredFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A EggBred franchise requires a total initial investment of $275K – $500K, including a $38K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $275K – $500K
- 16th pct Service Resta…
- Avg gross sales
- $1.4M
- 15th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 3
- 8th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.6x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $275K – $500K including a $38K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.4M/year.
- Verdict A (Top Quintile) with a risk score of 29/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Egg Bred International, Inc.
- Predecessor
- or parent
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President
- Albert Shim
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 1454 S. Harbor Blvd., La Habra, CA 90631
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $12K
- vs $181K prior year
Affiliated brands
- EggBred
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Albert Shim
- Headquarters
- CA
- Founded
- 2020
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $38K | $38K | |
| Franchise Location - Rent/Security Deposit | $10K | $15K | |
| Leasehold Improvements | $50K | $158K | |
| Architectural and/or Engineering Fees | $10K | $18K | |
| Kitchen Equipment Package (Including Hood, Used / New) | $50K | $90K | |
| Smallwares, Fixtures, Furniture and Furnishings & Decor | $60K | $85K | |
| Uniforms & Supplies | $2K | $4K | |
| Opening Inventory Food and Beverage | $10K | $15K | |
| Signage (Interior / Exterior) | $9K | $15K | |
| Utility Deposits, Licenses, Permits and Alarm System Set-up Fees | $4K | $6K | |
| Legal, Accounting, Licenses and Insurance | $3K | $5K | |
| P.O.S. System & Installation, Security & Cameras, Computers | $6K | $12K | |
| Opening Advertising | $2K | $5K | |
| Franchisee / Certification Training | $3K | $5K | |
| Additional Funds - Initial 3 Months | $20K | $30K | |
| Total initial investment | $275K | $500K |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$168K
12.0% margin
Unlevered ROIC
41%
EBITDA / total invested capital
Payback
29 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $275K – $500K
- Better than avg vs category
- Liquid capital req'd
- $20K – $30K
- Better than avg vs category
- Franchise fee
- $38K – $38K
- Better than avg vs category
- Royalty
- 5.0%
- Weekly Continuing License Fee · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $3K |
| Transfer fee | $13K |
| Renewal fee | $5K |
| Inventory (initial) | $10K – $15K |
| 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.
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Actual
- Sample size
- 1 units
- vs category median 13 · small
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How EggBred Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 2
- 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
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
- Multi-unit owners
- 1.0%
3-year detail · Item 20
- Opened (3yr)
- 2
- Transfers (3yr)
- 0
- Projected new
- 12
- Franchisor's next-year forecast
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 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
- South Dakota
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $2.2M
- Median loan
- $360K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into EggBred's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
Pat Putts v. Jerry Hawrylak v. Rick Finkelstein; Entertainment Factory, LLC; Death House Move, LLC; Entertainment Factory Music, LLC; and Entertainment Factory Studios, LLC, filed January 19, 2021 in District Court, 67th Judicial District of Tarrant County, Texas. Claims: Breach of Contract, fraud, statutory fraud, unjust enrichment, money had and received, and violation of Texas Blue Sky Securities Law. Judgment rendered April 19, 2024 in favor of third party plaintiff against third party defendants for $1,007,000.00 plus interest.
Largest disclosed settlement: $1,007,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 29 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius and Population |
| Protected territory | Yes |
| Territory radius | 3 mi |
| Territory population | 150,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
Pat Putts v. Jerry Hawrylak v. Rick Finkelstein; Entertainment Factory, LLC; Death House Move, LLC; Entertainment Factory Music, LLC; and Entertainment Factory Studios, LLC, filed January 19, 2021 in District Court, 67th Judicial District of Tarrant County, Texas. Claims: Breach of Contract, fraud, statutory fraud, unjust enrichment, money had and received, and violation of Texas Blue Sky Securities Law. Judgment rendered April 19, 2024 in favor of third party plaintiff against third party defendants for $1,007,000.00 plus interest.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 106 hrs
- Training location
- La Habra, CA
- Field support
- 106 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
45 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
EggBred · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a EggBred franchise?
The total investment to open a EggBred franchise ranges from $275K – $500K, with an initial franchise fee of $38K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do EggBred franchise owners earn?
According to Item 19 of the EggBred FDD, the average gross sales per unit is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is EggBred's franchise failure rate?
SBA 7(a) loan charge-off data is not available for EggBred (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 EggBred franchise locations are there?
As of their most recent FDD filing, EggBred has 3 total units in the United States, including 2 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is EggBred a good franchise to buy?
FranchiseVerdict rates EggBred as a A-grade franchise with a risk score of 29 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.