Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe
Formerly known as We Are Crackin' (Elmer's / Egg N' Joe)
Bottom line
- Total investment $1.1M – $4.7M including a $40K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $3.1M/year.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- System contracting at -38.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe units return on equity?
Equity IRR · 5-yr
25.0%
3.05× MOIC
Year-1 DSCR
3.37×
EBITDA ÷ debt service
Equity required
$19.0M
on $34.3M purchase
Total debt
$15.3M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate full-service casual dining restaurants (breakfast, lunch, dinner concepts) with a menu focused on egg-based and comfort food items. Day-to-day responsibilities include kitchen operations management, front-of-house service, inventory control, staff scheduling, and brand compliance across multiple dayparts. Operations require significant labor management and food cost control to navigate thin restaurant industry margins.
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 · 15 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
Moderate-to-high risk profile due to missing profitability data, unprotected territory, and unclear unit economics despite reasonable growth metrics.
Score breakdown · what drove the 64 / 100 rating
- 01MINORNo Item 19 (Average Net Income) disclosure — cannot verify actual profitability against $1.1M-$4.7M investment range
- 02MINORUnprotected territory creates direct competition risk; another franchisee could open adjacent location
- 03MINORWide investment spread ($3.5M gap) suggests inconsistent build-out costs or hidden variables
- 04MINORModest unit growth (14.3% YoY on only 29 units) indicates slower expansion than mature franchises
- 05MINORHigh royalty burden (4% of gross sales) with unknown net margins means breakeven point unclear
- 06MED15-year term locks franchisee into relationship with limited flexibility
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
24 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe · FDD (2026) PDF