The Original Pancake House Franchise Cost, Revenue & Review 2026
- Investment
- $483K – $1.7M
- Disclosed sales
- not disclosed
- SBA charge-off
- 13.6%
- on 59 loans
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. 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 →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
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 scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $483K – $1.7M
- 23rd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 2.0%
- 1st pct Service Resta…
- Units
- 147
- 33rd 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 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 $483K – $1.7M including a $60K franchise fee, 2.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 55/100 (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).
- GROWTHNegative: net -1 franchised outlets in the latest year (2 opened, 3 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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
- $6.1M
- vs $6.2M 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 59% 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
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Top 40% of category vs category
- Royalty
- 2.0%
- 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
The Original Pancake House makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one The Original Pancake House 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 annual revenue, 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.
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: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median of 7.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How The Original Pancake House 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 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
- 2.0%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- 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 · 15 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).
Where the owners are · Item 20 owner list
73 current owners across 16 states.
- IL 19
- CA 14
- FL 11
- MN 6
- IN 4
- MD 4
- CO 3
- MI 3
- GA 2
- AL 1
- AZ 1
- CR 1
- +4 more states
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.
- Total loans
- 59
- Loan volume
- $32.0M
- Median loan
- $442K
- 50th percentile
- Charge-off rate
- 13.6%
- on 59 loans · 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for The Original Pancake House from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 6.63%
- Lender concentration
- 14.3%
- Job velocity
- 7.0 per $100K
- NAICS benchmark
- 7.4%
- NAICS 722511
- Jobs supported
- 875
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Glacier Bank | 3 | $990K | 0.0% |
| 2 | Kitsap Bank | 3 | $1.5M | 0.0% |
| 3 | U.S. Bank, National Association | 3 | $2.6M | 0.0% |
| 4 | Texas Security Bank | 2 | $1.8M | 0.0% |
| 5 | Northwest Bank | 2 | $914K | 0.0% |
| 6 | The Huntington National Bank | 2 | $2.0M | 0.0% |
| 7 | Stearns Bank National Association | 2 | $1.2M | N/A |
| 8 | Woodlands National Bank | 2 | $600K | 0.0% |
| 9 | Columbia Bank | 1 | $670K | 0.0% |
| 10 | First Utah Bank | 1 | $150K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 7 | 0 | 0.0% |
| WAWashington | 5 | 0 | 0.0% |
| OHOhio | 3 | 0 | 0.0% |
| MNMinnesota | 2 | 0 | 0.0% |
| TXTexas | 2 | 0 | 0.0% |
| IAIowa | 1 | 0 | 0.0% |
| NCNorth Carolina | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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)
Subject: the franchisor is a named party (plaintiff).
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)
None disclosed
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
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 55 / 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 | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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
73 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 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns The Original Pancake House?
The Original Pancake House is franchised by The Original Pancake House Franchising, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the The Original Pancake House 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 The Original Pancake House FDD and qualifies whose outlets they describe.
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 55 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
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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.