The Original Pancake House Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$482,500 - $1,666,250
Franchise Fee
$60,000
Total US Locations
128
Business Summary
The Original Pancake House Franchising, Inc. offers franchises to operate The Original Pancake House restaurants. These establishments specialize in a variety of breakfast and lunch items, primarily pancakes, waffles, and omelets, serving food products and services for both on-premise consumption and takeout to the general public.
Corporate History
The Original Pancake House Franchising, Inc. was incorporated in Oregon on February 26, 1991, and has been franchising its The Original Pancake House restaurants since that time. While the franchising entity itself does not operate restaurants, an affiliate called The Original Pancake House Restaurant, Inc. (OPHRI) operates a restaurant and has been involved in the business for over 70 years, along with the franchisor and its owners. The Original Pancake House Franchising, Inc. has focused solely on this brand and has not offered franchises in other types of businesses.
Financial Overview
Investment Range
$482,500 - $1,666,250
Franchise Fee (Low)
$60,000
Franchise Fee (High)
$60,000
Royalty %
2%
Equipment Costs (Low)
$213,500
Equipment Costs (High)
$610,750
Working Capital
$88,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Original Pancake House Franchising, Inc. appears to be in good financial health, according to its audited financial statements. The independent auditors issued an unqualified opinion, indicating the financial statements are presented fairly, and did not include any concerns about the company's ability to continue as a going concern. The company reported strong net income, with $3,954,816 in 2024 and $4,474,649 in 2023. Its cash balance also increased significantly from $17,155 at the end of 2023 to $193,579 at the end of 2024. A prior period adjustment was made to restate the 2023 financials due to previously unrecorded accounts payable, but this adjustment was accounted for in the restated statements.
Financing Details
The Original Pancake House Franchising, Inc. does not offer any direct or indirect financing options to its franchisees. This means that The Original Pancake House franchisees will need to secure all necessary funding for their franchise through third-party lenders. The franchisor also does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
128
Franchised Units
127
Corporate Units
1
Avg Square Footage
4,000
Franchising Since
1991
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
The Original Pancake House Franchising, Inc. disclosed two active litigation cases in 2024. Both lawsuits were initiated by The Original Pancake House Franchising, Inc. against the same franchisee, Top H Enterprises, LLC, Forever Holdings, LLC, and Taylor McEver. The first case was filed in Oregon to collect overdue royalty payments and enforce reporting requirements. The second case, filed in Georgia, aims to enforce a default judgment that The Original Pancake House Franchising, Inc. obtained in the initial Oregon lawsuit.
Bankruptcy History
The Original Pancake House Franchising, Inc. has no bankruptcy history to report for itself or its key personnel.
Agreement Terms
Initial Term
20 years
Renewal Conditions
To renew their franchise agreement, The Original Pancake House franchisees must provide notice during the 17th year of their initial term. They will then need to sign the franchisor's current franchise agreement, complete any required remodeling of their restaurant to meet current standards, and sign a general release of claims. The Original Pancake House Franchising, Inc. does not charge an additional fee for renewal. The new agreement signed upon renewal may have materially different terms and conditions, including potentially a reduced Designated Area and increased fees.
Training & Support Program
Franchisor Assistance
The Original Pancake House Franchising, Inc. provides significant support to its franchisees. Before opening, The Original Pancake House Franchising, Inc. assists with site approval, designating a protected area typically a 5-mile radius with a minimum population of 100,000 and $65,000 household income. The franchisor also provides mandatory and suggested specifications for restaurant design, layouts, equipment, and food products, along with System Standards. Franchisees receive a loan of the Operating Manual and must purchase an initial inventory of proprietary Stabilizer Base from the franchisor. A comprehensive 10-week training program is provided for up to four individuals, including the franchisee, at a designated facility in Portland, Oregon. After opening, The Original Pancake House Franchising, Inc. offers ongoing guidance on operating problems and improvements through the Operating Manual, bulletins, and consultations. They continue to sell the proprietary Stabilizer Base and will review and approve proposed new items or suppliers. While The Original Pancake House Franchising, Inc. is not obligated to advertise, it may establish a Marketing Fund, which could require franchisees to contribute up to 1% of gross sales (though no fee is currently collected). Franchisees are permitted to develop their own advertising materials, subject to the franchisor's approval.
Initial Training Hours
631
Training Location
Portland, OR
Ongoing Support
After opening, The Original Pancake House Franchising, Inc. provides ongoing support by advising franchisees on operating issues and offering guidance on operational improvements. This guidance is delivered through its Operating Manual, written bulletins, and consultations at their offices, the restaurant, or via phone, fax, letter, or email. The franchisor continues to sell the proprietary Stabilizer Base. The Original Pancake House Franchising, Inc. also reviews and approves or disapproves requests from franchisees to use alternative brands or suppliers for various items, responding within 30 days. While not mandatory, The Original Pancake House Franchising, Inc. may require franchisees and their trained managers to attend periodic refresher courses, for which franchisees cover travel and living expenses, although no fee is currently imposed for these courses. The franchisor may also provide up to five consecutive days of additional on-site training at the franchisee's restaurant around its opening.
Franchise Requirements
Ideal Candidate Profile
The Original Pancake House Franchising, Inc. looks for qualified candidates, especially those with financial and business experience, who are willing to enter into multiple franchise agreements as part of a development option. The franchisor strongly recommends that franchisees actively participate in the business and be present on the premises. If the franchisee is an individual, they must personally complete all training and be involved in the restaurant's operation. For entity franchisees, at least one Controlling Owner (holding 25% or more equity and voting control) must complete training and participate personally in the restaurant's operations.
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
Territory Size Requirements
The Original Pancake House Franchising, Inc. defines its franchise territories as a 'Designated Area.' Typically, this area is a circle with a 5-mile radius around the approved restaurant location. However, the exact shape and size can vary based on market characteristics like demographics, traffic patterns, existing boundaries, and the presence of competitors. For population, The Original Pancake House Franchising, Inc. requires a minimum of 100,000 people living in households with a minimum household income of $65,000 within the territory.
Staffing Notes
The Original Pancake House Franchising, Inc. requires franchisees to designate a manager who will provide on-premise supervision of the restaurant. This manager must successfully complete the franchisor's training program, and the franchisee is obligated to replace any manager deemed unqualified by The Original Pancake House Franchising, Inc. The manager does not need to have an ownership interest in the restaurant. The initial training program for the franchisee and staff focuses on preparing food items like batters, sauces, and syrups, as well as cooking and plating food, along with instruction in service, cleaning, purchasing, scheduling, and policies.