FranchiseVerdict
The Original Pancake House logo
FV-02683·MODERATEExcellent81

The Original Pancake House

Food & Beverage - Full ServiceFranchising since 1991Website
Investment
$483K – $1.7M
64th pct Full Service
Avg revenue
57th pct Full Service
Royalty
2.0%
1st pct Full Service
Units
147
87th pct Full Service
SBA default
0.0%
vs <3% typical

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.
  • Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 34 loans (below the industry average).
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
The Original Pancake House Franchising, Inc.
Incorporated in
Oregon
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

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 The Original Pancake House unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $483K–$1.7M
Working capital
$
FDD reports $53K–$125K

Unlevered ROIC · per unit

13%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$150K
EBITDA margin
20.0%
Total invested
$1.2M
Payback
93 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate full-service pancake house restaurants, managing day-to-day operations including food preparation, customer service, staffing, inventory management, and marketing. They must maintain brand standards for the signature pancake menu and breakfast-focused concept while generating revenue through dine-in service across operating hours (typically breakfast and lunch service).

CEO
Elizabeth K. Highet
Founded
1991
FDD year
2025
States available
28

Item 7 · what it costs

The Vitals

Total investment
$483K – $1.7M
All-in to open one unit
Liquid capital
$53K – $125K
Cash you must have on hand
Franchise fee
$60K
Royalty
2.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
3.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
147
Opened
2
Last reporting year
Closed
3
Turnover rate
2.0%
Company-owned
1
Corporate units in the system
% franchised
99%
vs corporate-owned
Multi-unit owners
5.0%
Net growth (yr3)
-0.7%
Net unit change last year
3-yr CAGR
+0.0%
Compounded over last 3 years
2023
146-1
Franchised units
2024
147
Franchised units
2025
146
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

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.

Total loans
34
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

57
Risk · 0-100
MODERATE57 / 100

The Original Pancake House presents CAUTION-level risk due to a shrinking franchise system, active litigation over royalty enforcement, absence of financial performance data, and high capital requirements without transparent income verification.

Score breakdown · what drove the 57 / 100 rating

  1. 01MINORDeclining unit count (-0.7% YoY) indicates system contraction despite 147 locations
  2. 02HIGHActive litigation over royalty collection and enforcement suggests franchisor-franchisee disputes and payment compliance issues
  3. 03MEDNo Item 19 financial performance disclosure (Avg Revenue and Net Income not disclosed) prevents prospective franchisees from validating ROI on $482.5K-$1.66M investment
  4. 04MINORHigh initial investment range ($482.5K-$1.66M) combined with 2% royalty creates significant capital requirement with unclear profit potential
  5. 05MINOR20-year term is longer than industry standard (typically 10 years) and limits franchisee exit flexibility
  6. 06HIGHGoing Concern flag is false but system contraction and litigation suggest operational stress

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
20 years
Renewal term
20 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
2
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Oregon

Item 11

Training & Operations

Classroom training
0 hrs
On-the-job training
631 hrs

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

80 numbers

Locked
(213) 576-••••
Suite
CA
(415) 972-••••
One Sansome Street, Suite
CA
(301) 468-••••
MD

One-time purchase · CSV download · Validation questions included

FDD download

The Original Pancake House · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above