Keke's Breakfast Cafe Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$622,825 - $1,887,313
Franchise Fee
$30,000
Min Cash Required
$15,000
Total US Locations
69
Business Summary
Keke's Breakfast Café franchises restaurants that offer made-to-order breakfast and lunch items, including signature dishes like Home Fries, Omelets, Stuffed French Toast, pancakes, and waffles, along with select cocktails. Keke's Breakfast Café restaurants operate as dine-in, carry-out, and catering establishments, following a comprehensive system that includes distinctive design, proprietary recipes, uniform operational standards, and marketing programs.
Corporate History
Keke's Franchise Organization, LLC was formed on May 17, 2022, in Delaware and began offering Keke's Restaurants franchises in the United States in July 2022. Its immediate parent, Keke's, Inc., a Florida corporation, was formed on May 12, 2022, and operates company-owned Keke's Restaurants. The ultimate parent, Denny's Corporation, acquired the Keke's Breakfast Café system in July 2022 from K2 Restaurants, Inc. As part of this acquisition, Denny's Corporation assigned the rights for company-owned Keke's Restaurants to Keke's, Inc. and the franchise system rights to Keke's Franchise Organization, LLC.
Financial Overview
Investment Range
$622,825 - $1,887,313
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$15,000
Royalty %
5.5%
Marketing %
3%
Equipment Costs (Low)
$285,000
Equipment Costs (High)
$365,000
Working Capital
$32,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Keke's Franchise Organization's financial statements are consolidated with its parent company, DFO, LLC, which is an indirect wholly-owned subsidiary of Denny's Corporation. The auditor has provided an unqualified opinion, indicating that the consolidated financial statements fairly present the financial position. DFO, LLC is in compliance with its credit facility covenants. However, Keke's Franchise Organization's expenses are largely paid and allocated by its parent, Denny's, meaning the financial statements do not fully represent Keke's independent operational costs. Overall, the company shows positive net income and growing member's equity on a consolidated basis.
Financing Details
Keke's Franchise Organization does not offer any direct or indirect financing arrangements to its franchisees. Keke's Franchise Organization also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
69
Franchised Units
55
Corporate Units
14
Avg Square Footage
4,000
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Keke's Franchise Organization has disclosed three litigation cases. The first case, 50 East Thousand Oaks, LLC v Denny's, Inc., was filed in 2014 and involved a dispute over a landlord's right to operate a Denny's franchise. Keke's affiliate, DFO, LLC, settled the case in 2016 for $115,000 without admitting wrongdoing. The second case, Rogers Family Foods, LLC v DFO, LLC, commenced in 2019 and concerned a dispute over royalty and brand building fees under an expired franchise agreement. This case was settled in 2021 with each party bearing its own costs. The third case, RWDT FOODS, INC. v DFO, LLC AND DENNY'S, INC., was filed in August 2022 and is ongoing. It alleges breach of contract, fraudulent acts, and other claims, which Keke's Franchise Organization states it plans to vigorously defend.
Bankruptcy History
Keke's Franchise Organization has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Keke's Franchise Organization franchisees have one option to renew their franchise agreement for an additional ten-year term. To renew, franchisees must have been in substantial compliance throughout the original term and be in full compliance at expiration with the franchise agreement and all other agreements with Keke's Franchise Organization or its affiliates. Franchisees must provide written notice of their intent to renew between nine and six months before the current agreement ends. They will also need to sign a successor franchise agreement and any other required documents, including a general release, and pay a $20,000 successor agreement fee. Additionally, Keke's Franchise Organization may require the franchisee to update, remodel, redecorate, or refurbish their restaurant to meet then-current system standards within six months of being notified.
Training & Support Program
Franchisor Assistance
Keke's Franchise Organization provides extensive support to its franchisees. Before opening, Keke's Franchise Organization offers written site selection guidelines and assistance, architectural and design plans, and a Confidential Operations Manual. It also provides an initial training program for up to three people (the franchisee/appointed operator, General Manager, and one additional employee) at its corporate headquarters or an approved training location. Two trained representatives are also provided for up to nine days of on-site pre-opening and opening assistance. After opening, Keke's Franchise Organization conducts regular visits and evaluations to ensure quality, provides advertising and promotional materials for local marketing, and offers written materials on operational techniques and new developments. It also runs training programs and seminars, which may be mandatory, and offers additional on-site training upon request (for a fee). Keke's Franchise Organization administers a national Brand Building Fund for advertising and supports a gift card program and a required credit card program. Additionally, it offers technology development and support services for the required computer system, including phone support, software updates, menu and recipe maintenance, and cybersecurity monitoring.
Initial Training Hours
120
Training Location
Corporate headquarters and/or a company-owned restaurant in Florida, or another designated approved training facility
Ongoing Support
Keke's Franchise Organization provides ongoing support to its franchisees after opening. This includes visits and evaluations of the restaurant and its products to maintain high standards. Franchisees receive advertising and promotional materials for in-store and local marketing. Keke's Franchise Organization also provides written materials, including updates to the Manual, concerning operational techniques, new equipment, food products, and menu items. Training programs and seminars may be conducted for franchisees and their personnel, which can be mandatory. Additional on-site training is available upon request for a fee. Keke's Franchise Organization also administers the brand building fund and offers technology support, including help desk services, standard reporting, menu/discount maintenance based on the marketing calendar, technology vendor management, cybersecurity monitoring, and PCI compliance management.
Franchise Requirements
Ideal Candidate Profile
Keke's Franchise Organization seeks franchisees who can personally participate in the direct, on-premises supervision of the Keke's Breakfast Café. This involvement requires guiding and directing employees to enforce brand standards daily. If the franchisee is a legal entity, one of its owners or guarantors (Managing Owner) or an approved Designated Operator must fulfill this role. This individual must possess sufficient restaurant operations experience, dedicate full-time effort to supervising the restaurant(s), and permanently reside near the business location. For a Designated Operator, a beneficial equity interest of at least 10% or an approved employment agreement demonstrating a substantial stake in the business is required.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
limited
Territory Size Requirements
Keke's Franchise Organization defines territories based on whether the accepted location is urban or suburban. For suburban areas, the minimum granted territory can be up to a two-mile radius. For densely populated urban areas, Keke's Franchise Organization reserves the right to limit the designated territory size.
Staffing Notes
Keke's Franchise Organization requires each Keke's Breakfast Café to employ at least three managers. One of these managers can be the Managing Owner or Designated Operator if they are solely responsible for that single restaurant. If the Managing Owner or Designated Operator oversees multiple restaurants, three additional managers are required for each restaurant. Each manager must work full-time at the restaurant and reside nearby. All managers and personnel with access to confidential information must sign a Confidentiality Non-Disclosure and Non-Competition Agreement.