Another Broken Egg Cafe Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$897,000 - $1,569,000
Royalty fee
5.00%

Another Broken Egg Cafe: Revolutionizing Breakfast and Brunch Dining

Founded in 1996, Another Broken Egg Cafe has become renowned for its Southern-inspired breakfast, brunch, and lunch options. The inaugural cafe was launched in a quaint, turn-of-the-century house in Old Mandeville, Louisiana, on the Northshore of Lake Pontchartrain. The restaurant quickly gained popularity, leading to the opening of a second location in Destin, Florida, two years later, which adopted the name "Another Broken Egg Cafe."

What distinguishes Another Broken Egg Cafe is its commitment to culinary innovation and the use of high-quality ingredients, resulting in a menu that's both inventive and irresistibly delicious. The offerings include a variety of chef-created dishes, ranging from classic breakfast staples to unique brunch items, all paired with hand-crafted cocktails, spiked cold brews, and a comprehensive bar selection. 

This emphasis on unique flavors and artisanal quality has established Another Broken Egg Cafe as a standout in the breakfast and brunch dining scene.Over the years, the brand has seen steady growth, fueled by strong customer loyalty and a menu that appeals to food lovers. 

In 2017, The Beekman Group, a prominent private equity firm, took notice of the company, leading to a successful recapitalization. This strategic partnership is set to further accelerate the expansion of Another Broken Egg Cafe, making its award-winning menu accessible to more patrons nationwide.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount Low Amount High
Franchise Fee $40,000 $40,000
Opening Team Training Fee $0 $15,000
Rent, Deposits, Licenses and Permits $14,900 $47,500
Leasehold Improvements $500,000 $900,000
Utility Deposits $2,500 $7,500
Cafe Furniture, Fixtures and Equipment $220,000 $325,000
Point of Sale Computer/Cash Register System, Software, Training and Installation $35,000 $45,000
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) $897,400 $1,569,000

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Number of units

2024
Franchised units

40

43

45

Company-owned units

31

32

37

Total units

71

75

82

Franchise Disclosure Document

Training 

The franchisor provides a robust training program designed to equip franchisees with a thorough operational framework for successfully managing and operating their cafes.

Key Components of the Training Include:

Initial Management Training: This training is conducted at the franchisor's headquarters, certified training cafes, or other designated locations, including the franchisee's own cafe. Lasting four to six weeks, depending on whether the trainee is an internal promotion or an external hire, the program covers various aspects of the Another Broken Egg System through both classroom and in-cafe instruction. Primary participants include the on-site general manager, the kitchen manager, and the assistant manager/assistant general manager.

Additional Training: Franchisees and their staff may be required to attend and complete additional training programs as mandated by ABEA. This ongoing training ensures that all personnel are proficient in delivering services that meet the high customer service standards of the system.

Costs and Responsibilities: While ABEA covers the cost of instructors and training materials, franchisees are responsible for all other associated expenses, such as meals, travel, lodging, and other costs. Additionally, ABEA may offer optional further training, for which franchisees must pay a training fee of $3,000 per attendee, along with covering all related expenses.

Territory Protection

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

However, the franchisor retains certain rights that may affect the perceived exclusivity of a franchisee's territory. These rights include the ability to establish and operate cafes outside the Designated Trade Area, even if they are near the boundaries of that area.

Additionally, the franchisor reserves the right to offer and sell products and services, whether similar or different from those provided by the cafes, using the same Proprietary Marks or different trademarks. These products and services may be distributed through various channels, including grocery stores, convenience stores, mobile vans, trucks, and the internet.

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