Elmer's Restaurants Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,146,750 - $4,672,125
Total US Locations
25
Business Summary
We Are Crackin' LLC grants franchises to establish and operate restaurants under the Elmer's Breakfast Lunch Dinner, Elmer's Kitchen Breakfast Brunch Mimosas, or Egg N' Joe brand names. These restaurants feature breakfast and lunch food items, beverages, and other related products and services. The Elmer's Breakfast Lunch Dinner brand also features dinner options, while Elmer's Kitchen Breakfast Brunch Mimosas focuses on breakfast, brunch, and mimosas.
Corporate History
We Are Crackin' LLC was formed in Oregon on December 29, 2016, and began offering franchises in June 2018. Its parent company, Elmer's Restaurants, Inc. (ERI), has been operating Elmer's Restaurants since 1960. An affiliate, Elmer's Franchise Systems, Inc. (EFS), previously offered Elmer's Restaurant franchises from August 1982 to December 2011. On December 31, 2017, EFS transferred its franchise system assets, including existing franchise agreements, to We Are Crackin' LLC, which then took over as the franchisor for the Elmer's franchise system. We Are Crackin' LLC operates three restaurant brands: Elmer's Breakfast Lunch Dinner, Elmer's Kitchen Breakfast Brunch Mimosas, and Egg N' Joe.
Financial Overview
Investment Range
$1,146,750 - $4,672,125
Franchise Fee (High)
$40,000
Royalty %
4%
Marketing %
2%
Equipment Costs (Low)
$800,000
Equipment Costs (High)
$3,700,000
Working Capital
$145,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
We Are Crackin' LLC's financial statements indicate that its members' equity as of December 29, 2024, was $201,153. This amount is substantially lower than the estimated initial investment required for a franchisee to begin operations, which ranges from $1,146,750 to $4,672,125. This disparity raises questions about We Are Crackin' LLC's financial capacity to provide services and support to its franchisees.
Financing Details
We Are Crackin' LLC does not offer any direct or indirect financing for any part of the initial investment. The company also does not guarantee any promissory notes, mortgages, leases, or other financial obligations for its franchisees. Franchisees are solely responsible for arranging their own funding.
Performance Metrics
Total US Locations
25
Franchised Units
7
Corporate Units
18
Avg Square Footage
4,500
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
We Are Crackin' LLC has no litigation history to report in this FDD. In Item 3, it explicitly states that no litigation is required to be disclosed.
Bankruptcy History
We Are Crackin' LLC has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew the Elmer's Breakfast Lunch Dinner, Elmer's Kitchen Breakfast Brunch Mimosas, or Egg N' Joe franchise, franchisees must have largely complied with their current franchise agreement and all system standards throughout its term. They must be in full compliance on the date the new term would begin. Franchisees also need to either maintain their current restaurant location and agree to remodel it to meet current system standards, or find a new approved location and develop it according to those standards. They are required to sign We Are Crackin' LLC's then-current franchise agreement and related documents, which may have different terms, and must also sign a general legal release. A renewal fee must be paid, and franchisees must provide We Are Crackin' LLC with written notice of their intent to renew between 180 and 270 days before their current agreement expires.
Training & Support Program
Franchisor Assistance
We Are Crackin' LLC provides comprehensive assistance to its Elmer's Breakfast Lunch Dinner, Elmer's Kitchen Breakfast Brunch Mimosas, and Egg N' Joe franchisees. Before opening, We Are Crackin' LLC offers consultation and approval of the restaurant site, reviews and approves the lease, and provides initial training for up to four individuals (general manager, kitchen manager, assistant manager or supervisor) for approximately 6 weeks. We Are Crackin' LLC also sends a trainer or team to assist with the grand opening for up to two weeks (one week before and one week after opening) for the first and second restaurants, with the cost covered by the franchisor (except for extraordinary travel and living expenses). Franchisees receive electronic access to the Operations Manuals and specifications for all required equipment, furniture, fixtures, and signs, along with lists of approved suppliers. Ongoing support includes providing and updating System Standards and operating procedures, advising on required purchasing of Operating Assets, assisting with advertising and marketing materials and programs, maintaining corporate websites for brand promotion, providing lists of authorized vendors, and potentially setting maximum or minimum prices for products and services.
Initial Training Hours
244
Training Location
Vancouver, WA, or virtually
Ongoing Support
We Are Crackin' LLC provides ongoing support to its Elmer's Breakfast Lunch Dinner, Elmer's Kitchen Breakfast Brunch Mimosas, and Egg N' Joe franchisees by continually updating and providing access to System Standards and operating procedures. Franchisees receive guidance on purchasing authorized operating assets and assistance with advertising and marketing programs and materials. We Are Crackin' LLC maintains corporate websites for brand promotion and provides lists of authorized vendors and suppliers. Franchisees and their designated managers are required to attend various training courses, not exceeding five full days annually, and also attend annual conferences and mid-year business meetings, not exceeding four days annually. Additional training and assistance are available for a fee.
Franchise Requirements
Ideal Candidate Profile
While We Are Crackin' LLC does not provide a specific ideal candidate profile, it evaluates prospective Elmer's Breakfast Lunch Dinner, Elmer's Kitchen Breakfast Brunch Mimosas, or Egg N' Joe franchisees based on their net worth, overall business experience, and existing experience within their franchise system. For entities, a Managing Owner with at least 25% ownership and voting power is required to devote a reasonable amount of time and effort to the business. If the Managing Owner does not supervise full-time, Designated Managers must complete initial training and assume full-time operational responsibilities at the restaurant.
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
Non-Exclusive
Territory Size Requirements
For Area Development Agreements, We Are Crackin' LLC defines territories using specific geographic boundaries such as cities, zip codes, counties, states, or a circle with a defined radius. These development areas are typically sized to include a minimum of 75,000 to 100,000 people for each restaurant a franchisee agrees to develop. For individual franchise agreements, while no exclusive territory is granted, franchisees receive a right of first refusal to develop any new Elmer's Breakfast Lunch Dinner, Elmer's Kitchen Breakfast Brunch Mimosas, or Egg N' Joe restaurant that We Are Crackin' LLC might establish within a 1-mile radius of their approved location.
Staffing Notes
For an Elmer's Breakfast Lunch Dinner, Elmer's Kitchen Breakfast Brunch Mimosas, or Egg N' Joe restaurant, daily operations are overseen by a team of four Designated Managers. This team must include a general manager, kitchen manager, and either an assistant manager (for Elmer's) or a supervisor (for Elmer's Kitchen/Egg N' Joe). These Designated Managers are required to work full-time at the restaurant, and at least one must be present during all operational hours after successfully completing initial training. If a Designated Manager leaves, We Are Crackin' LLC must be notified within five days, and a qualified replacement must begin training within 30 days. Franchisees are solely responsible for all employment decisions, including hiring, firing, compensation, scheduling, and supervision of their staff.