Risk Score
Pending analysis
Investment Range
$181,200 - $450,300
Franchise Fee
$35,000
Total US Locations
10
Business Summary
Eggmania operates fast-casual restaurants specializing in high-level Indian cuisine that is prepared fresh and cooked to order. Eggmania also offers a food truck franchise option, Eggmania Xpress, which serves a limited menu of pre-selected items. Both types of businesses utilize Eggmania's proprietary recipes, techniques, trade dress, trademarks, and logos.
Corporate History
Vraj Franchisor, LLC was established in January 2020 in New Jersey and began offering Eggmania franchises in February 2020. The Eggmania system's concept originates from two affiliated companies: Anubhav LLC, which has operated an Eggmania restaurant in Jersey City since October 2012, and Vraj Foods Edison, LLC, which has operated a similar Eggmania restaurant in Iselin, New Jersey, since November 2015. Vraj Trading, LLC, another affiliate formed in July 2021, handles sales of certain ingredients and supplies to franchisees. The intellectual property for the Eggmania franchise system is owned by Vraj Foods IP Holder, LLC, formed in October 2015, which licenses it to Vraj Franchisor, LLC.
Financial Overview
Investment Range
$181,200 - $450,300
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$35,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$111,000
Equipment Costs (High)
$312,500
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial statements show a concerning financial condition, with Eggmania recording net losses in both 2022 ($19,284) and 2023 ($32,743), resulting in negative members' equity of ($18,249) by the end of 2023. This raises questions about Eggmania's ability to provide franchisees with sufficient services and support, as highlighted in the FDD's Special Risks section.
Financing Details
Eggmania does not offer any direct or indirect financing to franchisees. Franchisees are responsible for securing their own loans, leases, and other financial obligations.
Performance Metrics
Total US Locations
10
Franchised Units
6
Corporate Units
4
Avg Square Footage
2,150
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Eggmania has no litigation history to report.
Bankruptcy History
Eggmania has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Eggmania franchisees can renew for one additional ten-year term (or shorter if limited by a lease for restaurants) if they provide timely written notice (between 6 to 12 months before expiration), are in good standing without defaults, have satisfied all financial obligations, pay a renewal fee equal to 20% of the then-current initial franchise fee (with a minimum of $10,000), sign a general release, attend and successfully complete required training programs, modernize their restaurant or food truck to meet current design and decor standards, maintain possession of their premises or operating area, and sign the then-current form of franchise agreement, which may contain materially different terms.
Training & Support Program
Franchisor Assistance
Eggmania provides extensive assistance to its franchisees both before and after opening. Before opening, Eggmania helps with reviewing potential restaurant locations and leases (or food truck operating areas and permits), furnishing detailed design specifications for the restaurant or food truck, offering lists of required supplies and approved vendors, and lending an operations manual. Initial training is a comprehensive 4 to 5-week program for restaurant franchisees (4 weeks for food truck franchisees) held in Northern New Jersey, followed by 2 days of on-site support for restaurants or up to one week for food trucks, covering everything from kitchen layout to customer service. After opening, Eggmania offers ongoing field support, periodic visits, and guidance on operating procedures, purchasing, and local advertising programs. Franchisees are required to contribute to a Brand Development Fund (2% of gross revenues in the first year, 1% thereafter) for regional and national advertising campaigns. Eggmania also manages corporate websites and social media and specifies required computer systems, including a POS system, and for restaurants, requires Wi-Fi and security cameras, with access to franchisee data.
Initial Training Hours
212
Training Location
Northern New Jersey Area
Ongoing Support
After opening, Eggmania franchisees receive ongoing field support and general assistance, including periodic visits and written reports, guidance on operating procedures, purchasing, and local advertising programs. Eggmania works to establish and maintain high standards of quality and customer satisfaction and provides updates, revisions, and amendments to the operations manual. Franchisees or their designated management personnel may be required to attend additional training programs, seminars, or meetings, or an annual conference, at their own expense. Eggmania also requires participation in quality assurance monitoring programs, such as 'secret shopper' programs.
Franchise Requirements
Ideal Candidate Profile
Eggmania seeks franchisees who are capable and committed to the development and operation of their fast-casual restaurant or food truck business. Ideal candidates, or their designated Operating Principal, must demonstrate that they meet Eggmania's educational, managerial, and business standards, possess good moral character, a strong business reputation, and a solid credit rating. They should have the aptitude and ability to operate an Eggmania franchise, potentially evidenced by prior related experience or meeting Eggmania's testing criteria. Franchisees must have sufficient equity capital to operate the business and are expected to devote full-time and best efforts to its development and operation. The Operating Principal, who must have at least a 5% ownership stake, will be directly involved in all critical aspects, including accounting, reporting, bookkeeping, initial and ongoing training, site selection, construction or remodeling, financial management, and personnel decisions. They must also be on-site or on-call to oversee daily operations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Eggmania's protected territories vary in size based on whether the location is in a rural, suburban, or high-density urban area. Territories are defined by geographical boundaries such as streets, highways, or zip codes, and their size is determined using various measures including geographic barriers, travel time and distance radius, and population counts.
Staffing Notes
Eggmania franchisees are responsible for staffing their restaurants or food trucks with adequately trained and competent service, kitchen, and other personnel to ensure efficient customer service. During business hours, management staff must be on duty to supervise operations. All employees must meet appearance standards and wear standard uniforms as specified in Eggmania's manual. The franchisee is the sole employer and responsible for all employment decisions, including recruiting, hiring, firing, training, compensation, and work schedules.