Eggspectation
Bottom line
- Total investment $1.4M – $2.0M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $3.1M/year (median $2.9M).
- Rated MODERATE with a risk score of 65/100.
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 Eggspectation unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Eggspectation units return on equity?
Equity IRR · 5-yr
26.2%
3.20× MOIC
Year-1 DSCR
3.16×
EBITDA ÷ debt service
Equity required
$14.8M
on $28.3M purchase
Total debt
$13.5M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate casual breakfast and brunch-focused restaurants featuring egg-centric dishes, coffee, and light fare. Daily operations include food preparation, table service, inventory management, and staff oversight in a full-service dining environment. The 20-year territory protection suggests regional clustering strategy dependent on brand awareness and repeat customer loyalty.
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 · 17 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Micro-brand with active insider litigation, undisclosed unit economics, prior franchisee insolvency, and insufficient scale to support franchisor operations — meaningful execution and viability risks.
Score breakdown · what drove the 65 / 100 rating
- 01MEDNo Item 19 (average unit volumes) disclosed despite $3.14M average revenue claim — inability to substantiate franchisee profitability
- 02HIGHActive litigation involving founder Mr. Renda on oppressive conduct and fiduciary duty breach raises governance and capital allocation concerns
- 03MINOROnly 8 units with 40% YoY growth is extremely small system size; high vulnerability to unit closures and franchisor viability
- 04HIGHPrior franchisee bankruptcy and forced asset reacquisition by franchisor signals collection risk and potential franchisee distress
- 05MINOR5% royalty on $3.14M average revenue generates only ~$157K per unit in system royalties — insufficient to support robust franchisor infrastructure
- 06MED20-year term with protected territory locks franchisees into long commitment with limited exit flexibility in unproven 8-unit 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
31 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Eggspectation · FDD (2023) PDF