Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Gross Sales, Food and Paper Costs, and Labor Costs of the Single Affiliate-Owned Broken Yolk Cafe Restaurant

by Franchise Chatter on January 3, 2013

in Breakfast Franchise, Franchise Earnings, Restaurant Franchise

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Highlights of Broken Yolk Cafe’s Item 19 Financial Performance Representations (2012 FDD) – Part 1

  • The franchiser has developed a distinct format and method of doing business for the operation of full-service, family-style restaurants serving a large variety of uniquely-named breakfast and lunch items and related products and services, in connection with their trademarks, logos, recipes, and other proprietary items that they license, which they call the “BYC System.”

Estimated Initial Investment

  • Broken Yolk Cafe offers two franchise programs:
  • Single Restaurant. As a single restaurant franchisee, you will operate a full-service, retail, family-style restaurant that offers and serves a variety of breakfast and lunch menu items and related products and services under the trade name “Broken Yolk Cafe.” The Restaurants specialize in providing a large selection of home-style cooked meals in a casual and comfortable atmosphere.
  • Most Broken Yolk Cafe Restaurants are open to serve customers for breakfast and lunch only. The total investment to begin operation of a Broken Yolk Cafe Restaurant is from $588,000 to $1,362,500 (including restaurant buildout). This includes the initial franchise fee of $35,000 and initial logo merchandise costs of $1,000 that must be paid to the franchiser.
  • Area Development Agreement for Multiple Restaurants. As an Area Developer, the franchiser may offer you an Area Development Agreement whereby you will agree to develop more than one Broken Yolk Cafe Restaurant within a defined geographical area.
  • You must pay a development fee of $10,000 multiplied by the number of Restaurants you agree to open under the Area Development Agreement. The development fee is credited toward the total initial franchise fee for each new Restaurant.

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