FranchiseVerdict
Elmer’s Breakfast · Lunch · Dinner® / Egg N’ Joe® / Elmer’s Kitchen logo
D75/100FDD 2025

Elmer’s Breakfast · Lunch · Dinner® / Egg N’ Joe® / Elmer’s Kitchen — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

Back to overview

Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
8
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Oregon
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit decline of 46.2% year-over-year (25 units remaining) indicates systemic franchisee failure or franchisor distress
  2. 02HIGHGoing Concern status = franchisor financial viability questioned; risk of system collapse and loss of support
  3. 03MINORNo Item 19 (net income disclosure) combined with average revenue of $2.77M raises transparency concerns about actual profitability
  4. 04MINORUnprotected territory creates direct competition risk between franchisees and cannibalization of sales
  5. 05MINORHigh investment ceiling ($4.67M) with declining unit count suggests poor ROI and lengthy payback periods for new franchisees
  6. 06MINOR4% royalty on gross sales (not net) means fees continue even during unprofitable months

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.