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FranchiseVerdict

How Much Does a Another Broken Egg Cafe Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$897K – $1.6M

Franchise Fee

$40K

Royalty

5.0%

Ad Fund

1.5%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Another Broken Egg Cafe is $40K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Another Broken Egg Cafe franchise requires a total investment of $897K – $1.6M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $25K to $50K.

Ongoing Costs

Beyond the initial investment, Another Broken Egg Cafe franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Percentage of Gross Sales). The advertising or brand fund contribution is 1.5% of gross sales.

Net Worth & Liquid Capital Requirements

Another Broken Egg Cafe requires working capital of $25K – $50K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to Another Broken Egg Cafe's Item 19 financial performance representation:

$1.9MAvg. Gross Sales

Median gross sales: $1.8M

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View Another Broken Egg Cafe?

SBA Loans Issued

17

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Another Broken Egg Cafe has 17 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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