FranchiseVerdict
Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe logo
B63/100FDD 2026

Elmer’s Breakfast ⋅ Lunch ⋅ Dinner, Elmer’s Kitchen, and Egg N’ Joe — Litigation & Risk

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

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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
63 / 100
FranchiseVerdict composite
Rating
MODERATE
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 63/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 (Average Net Income) disclosure — cannot verify actual profitability against $1.1M-$4.7M investment range
  2. 02MINORUnprotected territory creates direct competition risk; another franchisee could open adjacent location
  3. 03MINORWide investment spread ($3.5M gap) suggests inconsistent build-out costs or hidden variables
  4. 04MINORModest unit growth (14.3% YoY on only 29 units) indicates slower expansion than mature franchises
  5. 05MINORHigh royalty burden (4% of gross sales) with unknown net margins means breakeven point unclear
  6. 06MED15-year term locks franchisee into relationship with limited flexibility

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.