The Original Pancake House Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Original Pancake House is a full-service breakfast franchise famous for its pancakes, omelets, and signature apple pancake. Franchisees run sit-down restaurants managing kitchen and service staff during breakfast and lunch.
FranchiseVerdict summary · 2026
A The Original Pancake House franchise requires a total initial investment of $483K – $1.7M, including a $60K franchise fee and an ongoing 2.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 13.6% charge-off rate across 59 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $483K – $1.7M
- 33rd pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 2.0%
- 0th pct Service Resta…
- Units
- 147
- 45th pct Service Resta…
- SBA charge-off
- 13.6%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · 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
- Total investment $483K – $1.7M including a $60K franchise fee, 2.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 13.6% across 59 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Original Pancake House Franchising, Inc.
- CEO title
- President and Director
- Elizabeth K. Highet
- CEO experience
- 30 yrs
- Years in role or industry
- Incorporated in
- OR
- HQ
- 8601 S.W. 24th Avenue, Portland, Oregon 97219
- Auditor
- PAULY, ROGERS AND CO., P.C.
- Audited financials
- Franchisor revenue
- $6.2M
- vs $6.1M prior year
Overview
About
- CEO
- Elizabeth K. Highet
- Headquarters
- OR
- Founded
- 1991
- FDD year
- 2025
- States available
- 28
Can you afford it, and what does the money buy?
Entry cost runs 14% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $53K | $125K |
| Equipment, build-out, other | $370K | $1.5M |
| Total initial investment | $483K | $1.7M |
Source: The Original Pancake House 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $483K – $1.7M
- Top 40% of category vs category
- Liquid capital req'd
- $53K – $125K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 2.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 3.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 2.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $3K |
| Renewal fee | $0 |
| Inventory (initial) | $20K – $46K |
| Total fee load | 3.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 3.0% — below the Full-Service Restaurants average of 7.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System roughly stable (+1.4% 3-year CAGR) with 147 units.
Multi-unit rate
Only 5% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 averages
How The Original Pancake House Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 147
- Opened
- 2
- Last reporting year
- Closed
- 3
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Multi-unit owners
- 5.0%
- Net growth (3-yr)
- -0.7%
- Net unit change over 3 years
- 3-yr CAGR
- +1.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 7
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 4.8%
- Owners selling to other franchisees
- Ceased ops
- 2.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 59
- Loan volume
- $32.0M
- Median loan
- $442K
- 50th percentile
- Charge-off rate
- 13.6%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 86.4%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 11
- Defaults
- 6
- Typical loan rate
- 6.6%
- avg rate to borrowers
- Franchised industry avg
- 13.2%
- brand above franchise avg ↑
- Jobs supported
- 875
- 7.0 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 33% went to startups / new businesses, 67% to established operators
Franchise vs independent — in full-service restaurants, franchised businesses charge off at 13.2% vs 9.7% for independents — franchising is associated with 36% higher SBA default risk in this category.
Top lenders financing The Original Pancake House franchisees
Showing 3 of 11 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Original Pancake House's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 9-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 13.6% — 15% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Strong, established system: 147 units since 1991, positive equity $863,185 and net income $3.95M on $6.08M revenue, audited. The 2 litigations are franchisor-as-plaintiff royalty collection suits against a single franchisee. No Item 19 is the only minor gap.
Litigation (Item 3)
The Original Pancake House Franchising, Inc. brought 2 cases against franchisees during fiscal year 2024: (1) Case No. 24CV05538 in Oregon Circuit Court (Multnomah County) against Top H Enterprises, LLC, Forever Holdings, LLC, and Taylor McEver for collection of royalty payments and enforcement of reporting requirements; (2) Case No. 24GC07047 in Georgia Superior Court (Cobb County) against the same defendants to enforce a default judgment obtained in the first matter.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debt under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a d
Audited financials (Item 21)
Yes · PAULY, ROGERS AND CO., 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: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 56 / 100 verdict
- 01MINORStrong financials: net income $3.95M, equity $863,185
- 02MINOR147 units, established since 1991
- 03MINOR2 suits are franchisor-plaintiff collections (routine)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 3.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Territory type | Radius |
| Protected territory | Yes |
| Territory radius | 5 mi |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 7 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Oregon |
| Litigation count | 2 |
View Item 3 litigation summary
The Original Pancake House Franchising, Inc. brought 2 cases against franchisees during fiscal year 2024: (1) Case No. 24CV05538 in Oregon Circuit Court (Multnomah County) against Top H Enterprises, LLC, Forever Holdings, LLC, and Taylor McEver for collection of royalty payments and enforcement of reporting requirements; (2) Case No. 24GC07047 in Georgia Superior Court (Cobb County) against the same defendants to enforce a default judgment obtained in the first matter.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 631 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
80 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Original Pancake House · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Original Pancake House franchise?
The total investment to open a The Original Pancake House franchise ranges from $483K – $1.7M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Original Pancake House franchise owners earn?
The Original Pancake House does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is The Original Pancake House's franchise failure rate?
Based on SBA 7(a) loan data, The Original Pancake House has a charge-off rate of 13.6% across 59 loans, meaning 13.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many The Original Pancake House franchise locations are there?
As of their most recent FDD filing, The Original Pancake House has 147 total units in the United States, including 146 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is The Original Pancake House a good franchise to buy?
FranchiseVerdict rates The Original Pancake House as a B-grade franchise with a verdict score of 56 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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 The Original Pancake House, you can request corrections or provide updated information.
Other Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.