The Toasted Yolk Cafe
Bottom line
- Total investment $1.1M – $1.7M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.2M/year.
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 76 loans (below the industry average).
- System growing at 7140% CAGR over 3 years with 42 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
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 Toasted Yolk Cafe unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Toasted Yolk Cafe units return on equity?
Equity IRR · 5-yr
28.1%
3.45× MOIC
Year-1 DSCR
2.89×
EBITDA ÷ debt service
Equity required
$10.9M
on $22.7M purchase
Total debt
$11.8M
SBA $5.0M + senior + seller note
Overview
About
The Toasted Yolk Cafe is a breakfast and brunch-focused casual dining concept. Franchisees operate full-service restaurants serving eggs, pancakes, sandwiches, and beverages in a quick-casual to casual dining format. Daily operations include food preparation, front-of-house service, inventory management, and staff scheduling.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
The Toasted Yolk presents moderate-to-cautious risk: strong unit growth and no litigation are offset by undisclosed profitability, franchisor going concern status, and high capital requirements without transparent net income benchmarks.
Score breakdown · what drove the 42 / 100 rating
- 01MINORNo Net Income disclosure (Item 19) prevents accurate ROI assessment despite $2.16M average revenue
- 02HIGHGoing Concern status is False, indicating potential financial instability or franchisor operational issues
- 03MINORHigh initial investment range ($1.06M–$1.72M) with 5% royalty creates significant break-even pressure
- 04MINORRapid unit growth of 24.1% YoY raises questions about franchisee quality, support scaling, and sustainability
- 05MEDMissing critical profitability data makes it impossible to validate whether $2.16M revenue translates to viable unit economics
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
52 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Toasted Yolk Cafe · FDD (2025) PDF