The Original Pancake HouseFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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 0.0% charge-off rate across 31 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $483K – $1.7M
- 32nd pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 2.0%
- 1st pct Service Resta…
- Units
- 147
- 44th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 31 SBA loans charged off, well below the 16% franchise average.
Franchising since 1991. Systems this mature have refined operations and brand recognition.
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 C (Average) with a risk score of 66/100. SBA loan charge-off rate of 0.0% across 31 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- 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
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
- Headquarters
- OR
- Founded
- 1991
- FDD year
- 2025
- States available
- 28
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
- Better than avg vs category
- Liquid capital req'd
- $53K – $125K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Near category avg 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.
vs Full-Service Restaurants averages
How The Original Pancake House Compares
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
- 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
3-year detail · Item 20
- Transfers (3yr)
- 7
- 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
- 31
- Loan volume
- $20.4M
- Median loan
- $442K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 80.6%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 11
- Defaults
- 0
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.
With a 0.0% charge-off rate across 31 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
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 66 / 100 rating
- 01MINORDeclining unit count (-0.7% YoY) indicates system contraction despite 147 locations
- 02HIGHActive litigation over royalty collection and enforcement suggests franchisor-franchisee disputes and payment compliance issues
- 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
- 04MINORHigh initial investment range ($482.5K-$1.66M) combined with 2% royalty creates significant capital requirement with unclear profit potential
- 05MINOR20-year term is longer than industry standard (typically 10 years) and limits franchisee exit flexibility
- 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
| 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 0.0% across 31 loans, meaning 0.0% 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 C-grade franchise with a risk score of 66 out of 100, 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.
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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.