Bottom line
- Total investment $822K – $1.1M including a $45K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.3M). Estimated payback in 4.6 years.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 126 loans (below the industry average).
- System growing at 48.3% CAGR over 3 years with 87 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 Eggs Up Grill unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Eggs Up Grill units return on equity?
Equity IRR · 5-yr
40.8%
5.54× MOIC
Year-1 DSCR
2.09×
EBITDA ÷ debt service
Equity required
$3.3M
on $11.9M purchase
Total debt
$8.6M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate casual breakfast and lunch restaurants featuring egg-centric dishes, pancakes, and Southern comfort food. Day-to-day operations include managing kitchen/front-of-house staff, sourcing ingredients, maintaining QSR food safety standards, and executing marketing within their unprotected territory. Revenue generation relies on foot traffic, delivery partnerships, and local marketing in a crowded breakfast/brunch market.
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 · 10 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
Eggs Up Grill presents moderate-to-caution risk: strong unit growth and solid reported margins are offset by unprotected territory, missing financial disclosures, thin net margins, and high capital requirements with no performance guarantees.
Score breakdown · what drove the 44 / 100 rating
- 01MINORNo protected territory despite $821.5K-$1.14M investment — high cannibalization risk
- 02MEDNo Item 19 (Financial Performance Representation) disclosed — cannot independently verify $1.27M average revenue claim
- 03MED16.9% net margin is thin for QSR; 5% royalty leaves limited profit buffer for underperformers
- 04MINORAggressive unit growth (22.9% YoY) may indicate oversaturation or unsustainable expansion
- 05MINORHigh initial investment ($821.5K minimum) with long 10-year term creates illiquidity risk
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
89 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Eggs Up Grill · FDD (2025) PDF