Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe Franchise Cost, Revenue & Review 2026
- Investment
- $1.5M – $4.7M
- Disclosed sales
- $3.2M
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Elmer's is a family restaurant franchise serving breakfast, lunch, and dinner built around egg dishes and comfort food. Franchisees run the restaurants, managing the kitchen, table service, and staffing.
FranchiseVerdict summary · 2026
A Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe franchise requires a total initial investment of $1.5M – $4.7M, including a $40K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average unit revenue was $3.2M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $1.5M – $4.7M
- 36th pct Service Resta…
- Avg gross sales
- $3.2M
- 14th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 29
- 23rd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.5M – $4.7M including a $40K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $3.2M/year (median $2.6M).
- RISKVerdict B (Above average), verdict score 60/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- We Are Crackin' LLC
- Parent company
- Elmer's Restaurants, Inc.
- FDD Item 1, page 7 of the 2026 FDD
- Predecessor
- Elmer's Franchise Systems, Inc.
- Prior franchisor entity
- CEO title
- President and Manager
- Gerald Scott
- Incorporated in
- OR
- HQ
- 363 High Street, Eugene, OR 97401
- Auditor
- Jones & Roth, P.C.
- Audited financials
- Franchisor revenue
- $1.9M
- vs $1.8M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- We Own Breakfast
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Gerald Scott
- Headquarters
- OR
- Founded
- 2016
- FDD year
- 2026
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 357% above the typical full-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee2 | $40K | $40K | |
| Leasehold Improvements3 | $700K | $2.2M | |
| Furniture, Fixtures and Equipment4 | $500K | $1.5M | |
| Signage5 | $35K | $75K | |
| Three Month’s Rent6 | $0 | $76K | |
| Security Deposit7 | $10K | $40K | |
| Lease Addendum Review Fee | $0 | $2K | |
| Utility Deposits and Fees | $1K | $10K | |
| Branded Inventory and Supplies8 | $2K | $3K | |
| Opening Inventory and Supplies9 | $45K | $110K | |
| Grand Opening Advertising10 | $2K | $2K | |
| Training Expenses11 | $75K | $250K | |
| Miscellaneous Opening Costs12 | $9K | $95K | |
| Professional Fees | $2K | $30K | |
| Insurance Premiums – 3 Months13 | $10K | $25K | |
| Liquor Licensing14 | $250 | $15K | |
| Additional Funds - 3 months15 | $90K | $200K | |
| Total initial investment | $1.5M | $4.7M |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.5M – $4.7M
- Top 40% of category vs category
- Liquid capital req'd
- $90K – $200K
- Top 40% of category vs category
- Franchise fee
- $40K
- Top 40% of category vs category
- Royalty
- 4.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $75K |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $45K – $110K |
| Total fee load | 5.0% of rev |
A 5.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 101% above the full-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$3.2M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $3.2M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- $2.6M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Gross Sales by location
- Sample size
- 7 outlets
- vs category median 18 · small
- Range (low → high)
- $2.2M→$6.2MCited, not corroborated — printed on page 52 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 3 / 10
- vs category median 3 / 10 · typical
Compared against 801 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $3.2M/year in gross sales. Median is $2.6M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 5.0% — below the Full-Service Restaurants median of 7.0%.
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System contracting at -38.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 29
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 12.5%
- Company-owned
- 21
- Corporate units in the system
- % franchised
- 28%
- vs corporate-owned
- Net growth (3-yr)
- +14.3%
- Net unit change over 3 years
- 3-yr CAGR
- -38.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
- Termination rate
- 50.0%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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
- Illinois
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
15 current owners across 4 states; 6 former (terminated, transferred or not renewed) listed separately.
- OR 8
- ID 4
- CA 2
- AZ 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Moderate-to-high risk profile due to missing profitability data, unprotected territory, and unclear unit economics despite reasonable growth metrics.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Jones & Roth, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 60 / 100 verdict
- 01MINORUnprotected territory creates direct competition risk; another franchisee could open adjacent location
- 02MINORModest unit growth (14.3% YoY on only 29 units) indicates slower expansion than mature franchises
- 03MINORHigh royalty burden (4% of gross sales) with unknown net margins means breakeven point unclear
- 04MED15-year term locks franchisee into relationship with limited flexibility
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 75,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Eugene, Oregon |
| Jury trial waiver | Yes |
| Governing law | OR |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 43 hrs
- On-the-job training
- 201 hrs
- Training location
- Vancouver, WA or other designated location
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe franchise?
The total investment to open a Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe franchise ranges from $1.5M – $4.7M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe franchise owners earn?
According to Item 19 of the Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe FDD, the average gross sales per unit is $3.2M. The median is $2.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe?
Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe is franchised by We Are Crackin' LLC. Its parent company is Elmer's Restaurants, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe FDD and qualifies whose outlets they describe.
What is Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe (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 Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe franchise locations are there?
As of their most recent FDD filing, Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe has 29 total units in the United States, including 8 franchised units and 21 company-owned units. 1 new units were opened in the latest reporting year.
Is Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe a good franchise to buy?
FranchiseVerdict rates Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe as a B-grade franchise with a verdict score of 60 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
Are you the franchisor?
If you represent Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe, you can request corrections or provide updated information.
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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.