Another Broken Egg Cafe Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$802,400 - $1,599,000
Franchise Fee
$30,000
Total US Locations
101
Business Summary
Another Broken Egg Cafe restaurants are distinctive, cafe-style establishments that specialize in breakfast, brunch, and lunch offerings. These cafes feature a menu of egg and omelet dishes, gourmet waffles, pancakes, French toast, salads, sandwiches, beverages, and other related items. They provide service for eat-in and take-away, and, when feasible, catering and home delivery. Another Broken Egg Cafe locations are typically found in freestanding buildings, but can also be in mall or storefront settings, operating with a uniform business format and specific standards for design, food preparation, and service.
Corporate History
Another Broken Egg Cafe's history traces back to November 1996 when Ron E. Green opened the first "Broken Egg Cafe" in Mandeville, Louisiana as a sole proprietor. Mr. Green later formed The Broken Egg, Inc., which owned and operated the Cafe until its dissolution in 2010. The Broken Egg, Inc. did not franchise. The predecessor and affiliate entity, Another Broken Egg of America, LLC (ABEA-FL), initially organized as a Florida corporation in September 2000, began offering "Another Broken Egg Cafes" franchises in 2002. In October 2017, ABEA-FL converted to a Florida limited liability company. Another Broken Egg of America Franchising, LLC (ABEA) was organized in Delaware on October 6, 2017, and officially took over the franchising operations in November 2017, with ABEA-FL assigning all existing franchise and development agreements to ABEA. ABEA changed its corporate name on August 14, 2018. ABEA-FL continues to own the trademarks and intellectual property, granting ABEA a perpetual license. In December 2020, ABEA's parent company, ABEA Acquisition, Inc., acquired 22 franchised cafes, which are now operated by ABEA's affiliates.
Financial Overview
Investment Range
$802,400 - $1,599,000
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
1.75%
Equipment Costs (Low)
$625,000
Equipment Costs (High)
$1,250,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Another Broken Egg Cafe's financial statements for 2024 show that the company has negative working capital of approximately -$669,653. This indicates that its current liabilities are greater than its current assets, which can point to potential liquidity challenges. In 2023, the negative working capital was smaller, at approximately -$70,356. While the auditors did not express "substantial doubt" about the company's ability to continue as a going concern, prospective franchisees should be aware that Another Broken Egg Cafe has substantial guarantees. The company guarantees a $45 million credit facility for its parent company, with about $40.98 million outstanding as of December 29, 2024, and this facility is set to expire in November 2026. This credit facility is collateralized by most of the company's and its affiliates' assets. Additionally, Another Broken Egg Cafe guarantees the operating leases of two affiliates. As of December 29, 2024, no default events have occurred related to these guarantees.
Financing Details
Another Broken Egg Cafe does not offer any direct or indirect financing arrangements to its franchisees. This means that franchisees will be responsible for securing their own funding for notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
101
Franchised Units
61
Corporate Units
40
Avg Square Footage
4,000
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Another Broken Egg Cafe has not disclosed any litigation that is required to be reported in Item 3 of its Franchise Disclosure Document. This indicates that there are no material legal proceedings, criminal actions, or civil actions pending or concluded against Another Broken Egg Cafe, its predecessors, or its executives that meet the disclosure requirements.
Bankruptcy History
Another Broken Egg Cafe's Chief Financial Officer, Casey Rees, was previously the Senior Vice President-Finance of Tijuana Flats Restaurants, LLC. In April 2024, Tijuana Flats Restaurants, LLC and an affiliated entity filed for Chapter 11 bankruptcy. A plan of reorganization was confirmed by the Bankruptcy Court in January 2025, allowing the debtors to emerge from bankruptcy and continue operations. Other than this, Another Broken Egg Cafe has no other reportable bankruptcy history.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Another Broken Egg Cafe franchisees who wish to renew their franchise agreement for one of two additional 10-year terms must meet several conditions. They need to provide written notice between 90 and 180 days before their current term expires. Franchisees must not be in default of any agreements, must pay a $10,000 renewal fee, and must sign the then-current form of franchise agreement and a general release. They are also required to secure their premises, complete any necessary modifications or remodeling to meet current brand standards, and comply with current qualification and training requirements. Additionally, to be eligible for renewal, Another Broken Egg Cafe franchisees must have achieved Gross Sales of not less than 75% of the System average during the last 12 months of their term and maintained an average score of at least 80% on audits and mystery shopper evaluations over the preceding three-year period.
Training & Support Program
Franchisor Assistance
Another Broken Egg Cafe provides franchisees with comprehensive support starting before their Cafe opens. This includes general site selection guidelines and consultation, though Another Broken Egg Cafe must approve the chosen site. They assist with developing standard floor plans, construction plans for interior and exterior design, and the layout of signs and equipment, which franchisees then adapt for their specific location. Another Broken Egg Cafe also furnishes general advertising materials and suggestions for the Grand Opening promotion. A critical part of pre-opening support is the initial operations training program, which is mandatory for the General Manager, kitchen manager, assistant manager/assistant general manager, and one beneficial owner. Another Broken Egg Cafe covers the cost of instructors and training materials for this initial training. Another Broken Egg Cafe also provides a confidential operating manual.
Initial Training Hours
325
Training Location
Certified Training Cafe and Franchisee's Cafe
Ongoing Support
Another Broken Egg Cafe provides ongoing support to its franchisees after their Cafes open. This includes regular inspections and evaluations, which can be announced or unannounced, to ensure high standards of quality, appearance, professionalism, and service across the Another Broken Egg System. The franchisor also maintains a National Advertising Fund to promote the brand. Additionally, Another Broken Egg Cafe may conduct periodic training programs for its network of franchisees and General Managers to update them on new developments and operational changes, covering the cost of instruction and materials for mandatory training, while franchisees handle other related expenses. Optional training programs are also offered for a fee. The franchisor conducts mystery shopper visits and food safety assessments through a third-party vendor (Steritech) approximately four times per year, with reassessment costs charged to the franchisee if they fail. Special field assistance is available, either upon franchisee request or if a Cafe fails a Brand Assessment, for an additional fee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
For a single Another Broken Egg Cafe, the designated trade area typically consists of a radius between one and three miles around the accepted location. In some instances, this radius may be smaller or defined by another delineation. For a multi-unit development, the Development Area is a negotiated geographic region, the size of which varies based on factors such as population, existing business counts and types, general demographics, market demand for Another Broken Egg Cafe products and services, consumer shopping patterns, sales volume, traffic flow, and accessibility.
Staffing Notes
Another Broken Egg Cafe locations must be operated either by the franchisee or a designated Operating Partner. The franchisor recommends personal supervision by the franchisee. At least one beneficial owner and any Operating Partner must complete the Operations Training. The franchisee or their Operating Partner must dedicate full-time efforts to managing and supervising the Cafe during business hours. For the first three Cafes, the initial franchise fee covers on-site training by the franchisor's 'Opening Team'. For the fourth and subsequent Cafes, if the franchisor requires or the franchisee elects on-site training from the Opening Team, a training fee (currently $3,000 per person or actual costs, whichever is higher) applies for all 'Required Trainees', plus reimbursement for the Opening Team's travel expenses and wages. The 'Required Trainees' include the on-site General Manager, the kitchen manager, and an assistant manager/assistant general manager (a total of three people). An additional beneficial owner may attend this initial training free of charge for the first three Cafes. If a franchisee group operates three or more Another Broken Egg Cafes, the franchisor may suggest employing one or more full-time group managers to oversee operations. These group managers must complete franchisor training and cannot serve as an on-site General Manager for any single Cafe. Franchisees are solely responsible for all employment decisions and actions related to their employees, including setting wages, supervision, and compliance with all labor laws.