Brunch It Up logo

Brunch It Up Franchise

Audited Financials
Food and BeverageEst. 2021Milwaukee, WI
brunchitup.com

Risk Score

Pending analysis

Investment Range

$782,500 - $2,010,000

Franchise Fee

$40,000

Total US Locations

3

Business Summary

Brunch It Up LLC offers franchises for modern restaurants that operate under the Brunch stylized logo, serving classic and inventive breakfast and lunch fare. These restaurants feature cheery, colorful décor, include a patio for outdoor service, and have a bar for alcohol sales. Brunch It Up locations also offer pick-up catering and delivery services.

Corporate History

Brunch It Up LLC was formed in September 2021 as a Wisconsin limited liability company. The company began offering franchises for its modern restaurant concept in February 2022. While Brunch It Up LLC itself has not operated restaurants, its founder opened the first Brunch location in Milwaukee, Wisconsin in June 2016, and a second location in Brookfield, Wisconsin in March 2018 through an affiliate called Brunch WI, LLC. These affiliate-owned locations have been instrumental in refining the Brunch menu and operations, and Brunch WI, LLC is licensing its intellectual property to Brunch It Up LLC for franchising purposes.

Financial Overview

Investment Range

$782,500 - $2,010,000

Franchise Fee (Low)

$40,000

Franchise Fee (High)

$50,000

Royalty %

6%

Marketing %

1.5%

Equipment Costs (Low)

$400,000

Equipment Costs (High)

$550,000

Working Capital

$275,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Brunch It Up LLC's financial statements show net losses for 2023 and 2022, resulting in a member's equity deficit of $(39,446) as of December 31, 2023. The company also reported negative working capital, with current liabilities exceeding current assets. Despite these figures, the independent auditor issued an unqualified opinion on the financial statements, indicating they present fairly in all material respects, and no going concern qualification was noted by the auditor.

Financing Details

Brunch It Up LLC does not offer any direct or indirect financing to its franchisees. This means franchisees must secure their own funding to establish their business, and Brunch It Up LLC will not guarantee any loans, leases, or other financial obligations incurred by the franchisee.

Performance Metrics

Total US Locations

3

Franchised Units

1

Corporate Units

2

Avg Square Footage

3,750

Franchising Since

2022

Agreement Terms

Initial Term

8 years

Renewal Term

8 years

Renewal Conditions

To renew their franchise, Brunch It Up LLC franchisees must be in good standing and meet several conditions. These include providing at least 210 days' written notice of their intent to renew, signing Brunch It Up LLC's then-current franchise agreement (which may have different terms or fees), upgrading their restaurant and equipment to current brand standards, providing proof of property control for the new term, signing a general release, and paying a renewal fee of $7,500.

Training & Support Program

Franchisor Assistance

Brunch It Up LLC provides franchisees with comprehensive assistance both before and after their restaurant opens. Prior to opening, Brunch It Up LLC helps with site selection by providing a search area, a demographic study, site selection criteria, and visiting two potential locations identified by the franchisee. It approves the chosen site, designates the territory, and provides a sample interior layout and décor specifications. Brunch It Up LLC also reviews the franchisee's plans and proposed lease, and loans a Brand Standards Manual. Initial training for two attendees covers approximately 5 days of classroom instruction and 2 weeks of on-the-job experience. After opening, Brunch It Up LLC provides 5 days of on-site support, telephone support for operational issues, maintains a sub-page on its website for the franchisee's restaurant, administers a Brand Fund for system-wide marketing, and conducts periodic calls or online sessions for franchisees. Additional training for new general managers, operational refreshers, and annual leadership/kitchen training are also offered, some of which may incur additional fees.

Initial Training Hours

120

Training Location

Milwaukee, Wisconsin area

Ongoing Support

After their grand opening, Brunch It Up LLC franchisees receive ongoing support including 5 days of on-site assistance within the first 14 days. Brunch It Up LLC is available during normal business hours to provide telephone support for operational questions. Franchisees also benefit from the administration of a Brand Fund for system-wide advertising and marketing, a sub-page on the franchisor's website, and periodic calls or online sessions to discuss operating procedures, best practices, and new offerings. Additionally, Brunch It Up LLC offers mandatory annual Leadership/Kitchen Training for owners and General Managers, and additional operational training if standards are not met or to maintain competitiveness, which may incur fees. New General Managers who did not complete initial training must complete a classroom portion within 30 days of starting their role.

Franchise Requirements

Ideal Candidate Profile

Brunch It Up LLC seeks franchisees who possess prior business experience and are committed to being owner-operators, living in close proximity to their restaurant. Franchisees must participate personally on a full-time, day-to-day basis in the restaurant's operation. They are generally not permitted to hire a General Manager until their restaurant has been open for at least one year. Even after a General Manager is hired, the owner must remain involved in daily operations. For multi-unit owners (more than 4 restaurants), an operating partner with at least a 20% ownership interest and successful completion of the Initial Training Program is required.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

Full-Time

Territory Type

Protected

Staff Count

23

Territory Size Requirements

Each Brunch It Up LLC franchisee is granted a Designated Territory, which typically encompasses an area of approximately 3 miles around their restaurant. The precise size of the territory may vary based on factors such as whether the restaurant is in a metropolitan area or its proximity to other Brunch It Up LLC locations.

Staffing Notes

Brunch It Up LLC franchisees typically need to staff their restaurants with between 20 to 25 employees. Franchisees are required to personally participate full-time in the day-to-day operation of their restaurant. A General Manager cannot be hired until the restaurant has been operating for at least one year, and even then, the owner must remain involved. Any General Manager must successfully complete Brunch It Up LLC's training program. For multi-unit owners (more than four restaurants), an operating partner is required to assist with day-to-day management. Franchisees are also responsible for providing initial and annual training programs for all their staff members, ensuring they meet Brunch It Up LLC's requirements and complete the training before performing services.