Another Broken Egg Cafe Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$847,000

-

$1,226,000

LOCATIONS

82

Emily

Updated

May 2, 2024

Is

Another Broken Egg Cafe

a franchise?

Yes,
Another Broken Egg Cafe
currently
accepts
franchise
applications

Another Broken Egg Cafe, known for its Southern-inspired breakfast, brunch, and lunch offerings, was founded in 1996. The first location was opened in a charming turn-of-the-century house in Old Mandeville, Louisiana, on the Northshore of Lake Pontchartrain. Due to the overwhelming response from customers, a second restaurant was opened in Destin, Florida, two years later, which was named "Another Broken Egg Cafe."

What sets Another Broken Egg Cafe apart is its dedication to culinary innovation and high-quality ingredients, resulting in a menu that's both creative and "craveably" delicious. The menu features a range of chef-inspired dishes, from traditional breakfast favorites to unique brunch items, complemented by hand-crafted cocktails, spiked cold brews, and a full bar. This focus on distinctive flavors and artisanal flair has made Another Broken Egg Cafe a unique destination in the breakfast and brunch restaurant category.

The brand has experienced consistent growth over the years, driven by strong customer loyalty and a menu that resonates well with food enthusiasts. In 2017, the company caught the attention of The Beekman Group, a leading private equity firm, which led to a successful recapitalization. This partnership is poised to further fuel the expansion of Another Broken Egg Cafe, bringing its award-winning menu to even more guests across the country.

How many

Another Broken Egg Cafe

franchises

are there?

In 2022, there were
82
outlets in
the United
States, of which
45
are franchises, and
37
are corporate-owned.

What are the

Another Broken Egg Cafe

franchise

fees?

Advertising fee

4.50%

Initial Franchise Fee

An initial franchise fee of $40,000 is required, which is non-refundable and must be paid upon the execution of the Agreement. This fee is deemed fully earned by ABEA upon payment.

Royalty Fees

Franchisees are obligated to pay a continuing non-refundable weekly royalty fee of 5% of Gross Sales, which is a percentage of Gross Sales for the preceding week. 

National Advertising Fund Fee

A fee of up to 3% of Gross Sales; currently set at 1.5%, is payable weekly. This contributes to a system-wide National Advertising Fund. 

Regional Marketing Fund Fee

This is up to 1.5% of Gross Sales required for regional marketing, payable alongside the Royalty Fee. 

Local Advertising Expenditures

Franchisees must spend a minimum amount of 1.5% of Gross of Gross Sales on local advertising and are responsible for self-administering these expenditures. 

Transfer Fee

The amount is $17,500 if the transferee is not a current ABEA franchisee or $10,000 if the transferee is a current ABEA franchisee.

Renewal Fee

A non-refundable fee of $10,000 is payable upon the renewal of the Franchise Agreement, subject to the terms of the renewal provisions. 

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Another Broken Egg Cafe

franchise?

It costs between
$847,000
and
$1,226,000
to start a
Another Broken Egg Cafe
franchise.
Type of Expenditure Amount
Franchise Fee $40,000 - $40,000
Opening Team Training Fee $0 - $15,000
Rent, Deposits, Licenses and Permits $14,900 - $47,500
Leasehold Improvements $450,000 - $750,000
Utility Deposits $2,500 - $7,500
Cafe Furniture, Fixtures and Equipment $220,000 - $300,000
Point of Sale Computer/Cash Register System, Software, Training and Installation $25,000 - $35,000
Signage $15,000 - $30,000
Initial Inventory $8,000 - $19,500
Travel, Living and Salary Expenses While Management Training $12,000 - $37,500
Pre-Opening Team Expenses $0 - $5,000
Insurance $8,000 - $20,000
Grand Opening Advertising $15,000 - $15,000
Legal and Accounting $2,000 - $12,000
Additional Funds - 3 months $25,000 - $50,000
Total Franchise Business Cost (Excluding Real Estate and Construction of Building on Leased Ground) $837,400 - $1,384,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Another Broken Egg Cafe

provide

training

to its

franchisees?

Yes,
Another Broken Egg Cafe
provides
training

The franchisor has a comprehensive training program to offer a comprehensive operational framework for franchisees to effectively manage and operate their cafes.

Key Aspects of the Training Include:

  • Initial Management Training: Conducted at the franchisor's home office, certified training cafes, or other designated locations, including the franchisee's own cafe. This training lasts a minimum of four to six weeks, depending on whether the trainee is an internal promotion or an external hire. It covers various aspects of the Another Broken Egg System through a combination of classroom and in-cafe instruction. The primary participants include the on-site general manager, the kitchen manager, and the assistant manager/assistant general manager.
  • Additional Training: Franchisees and their employees may be required to attend and successfully complete additional training programs as mandated by ABEA from time to time. This training aims to ensure that all personnel are well-versed in delivering approved services that meet the customer service standards of the system.
  • Costs and Responsibilities: While ABEA is responsible for the cost of instructors and materials for the training, franchisees are responsible for all other associated costs, including meals, travel, lodging, and other expenses. In some cases, ABEA may also offer optional additional training, for which the franchisee would be responsible for paying a training fee of $3,000 per person attending, in addition to covering all related costs and expenses.

Does

Another Broken Egg Cafe

provides

territory

protection?

The franchisor does provide territory protection to its franchisees, ensuring that during the term of the franchise agreement and any renewals thereof, ABEA (the franchisor) will not establish or license another entity to establish a cafe under the system within the franchisee's Designated Trade Area without the franchisee's prior written consent.

However, the franchisor reserves several rights that might impact the perceived exclusivity of a franchisee's territory. These reserved rights include the ability to establish and operate cafes at locations outside the Designated Trade Area, even if they are near the boundaries of that area.

The franchisor also retains the right to offer and sell products and services that may be the same as or different from those offered by the cafes, using either the same Proprietary Marks or different trademarks, through various channels of distribution, including but not limited to grocery stores, convenience stores, mobile vans, trucks, and the internet.

Can a

Another Broken Egg Cafe

franchise

be run as

a passive

investment?

The franchisor mandates significant franchisee involvement in the day-to-day operations of their franchises. The franchise agreement stipulates that the franchisee, or a designated Operating Partner, must actively supervise and manage the cafe.

This level of involvement is deemed crucial for the success of the franchised cafe, relying heavily on the personal efforts, supervision, and attention of the franchisee or the Operating Partner.

Furthermore, franchisees are given sole and exclusive responsibility for all aspects of their employment relationships, including but not limited to maintaining applicable insurance, setting wage rates, and ensuring compliance with all local, state, and federal laws.

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