Waffle Cabin logo

Waffle Cabin Franchise

Audited Financials
Food and BeverageEst. 2012South Chittenden, VT
www.wafflecabin.com

Risk Score

Pending analysis

Investment Range

$90,250 - $239,950

Franchise Fee

$11,750

Total US Locations

52

Business Summary

Waffle Cabin operates quick-serve restaurants or mobile trailers offering Belgian sugar waffles and beverages like coffee, tea, and hot cocoa. Waffle Cabin locations, which are typically 12 to 16-foot cabins or kiosks, are often found in ski resorts, malls, stadiums, transportation centers, airports, amusement parks, and theme parks. Mobile trailer/truck units serve densely populated areas, parks, and large public outdoor event spaces.

Corporate History

Atomium, Inc., operating as Waffle Cabin, was formed as a Vermont corporation on August 17, 2012. The company began offering franchises in November 2012. Waffle Cabin does not directly own or operate any of the franchised business types; instead, its affiliate, Leo's Inc., a Massachusetts corporation, currently owns and operates 13 Waffle Cabin locations, primarily at ski resorts in Vermont, New York, and Massachusetts.

Financial Overview

Investment Range

$90,250 - $239,950

Franchise Fee (Low)

$11,750

Franchise Fee (High)

$23,500

Royalty %

5%

Equipment Costs (Low)

$50,000

Equipment Costs (High)

$130,000

Working Capital

$13,750

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Waffle Cabin's financial statements indicate a strong financial position. In 2023, the company reported total current assets exceeding $1 million, compared to current liabilities of approximately $156,000, demonstrating robust liquidity. Waffle Cabin achieved a net income of $336,996 in 2023 and $210,428 in 2022, with retained earnings growing to over $1 million by the end of 2023. The independent auditors issued an unqualified opinion, confirming that the financial statements fairly present Waffle Cabin's financial standing and operational results without any concerns about its ability to continue as a going concern.

Financing Details

Waffle Cabin does not offer any direct or indirect financing arrangements to franchisees, nor does it guarantee their notes, leases, or other obligations.

Performance Metrics

Total US Locations

52

Franchised Units

38

Corporate Units

14

Avg Square Footage

900

Franchising Since

2012

Agreement Terms

Initial Term

5 years

Renewal Term

5 years

Renewal Conditions

To renew their franchise agreement, Waffle Cabin franchisees must provide written notice between six and nine months before the initial term ends. Franchisees must be in substantial compliance throughout the initial term and in full compliance at its expiration with the franchise agreement and all other agreements with Waffle Cabin or its affiliates. They must also be current on all payments to Waffle Cabin, sign a general release, and sign Waffle Cabin's then-current franchise agreement. A successor term fee of $2,000 is also required. Waffle Cabin franchisees may need to remodel or redecorate their business to meet current brand standards. The terms of the new agreement may differ materially from their original contract, though the territory boundaries will remain the same.

Training & Support Program

Franchisor Assistance

Waffle Cabin provides franchisees with various forms of support. Before opening, this includes written site selection guidelines, a possible on-site evaluation of the proposed location, standards for cabin installation, a confidential operations manual, a list of approved products and suppliers, initial training for up to four individuals (including the General Manager) at no additional charge, and up to three days of on-site opening assistance. During operation, Waffle Cabin conducts periodic visits and evaluations to ensure quality standards, offers advice and written materials (including manual updates) on managing the business, and may provide additional on-site training for a fee. Waffle Cabin also administers a brand development fund if established and indemnifies franchisees for trademark use, provided they are in full compliance with the agreement. Waffle Cabin may also designate maximum prices for products and services where permitted by law.

Initial Training Hours

21

Training Location

Corporate headquarters or Rutland, VT

Ongoing Support

Waffle Cabin provides ongoing support to franchisees through regular visits and evaluations to maintain quality standards. Franchisees receive advice and written materials, including updates to the operations manual, concerning management techniques, new equipment, food products, and preparation. Additional on-site training or assistance is available upon request for a per diem fee plus expenses. Waffle Cabin also administers a brand development fund, if established, for regional or national advertising. The franchisor may also designate maximum prices for menu items, products, and services where legally permitted.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

hybrid

Owner Participation

hands-on

Territory Type

Non-Exclusive

Territory Size Requirements

Waffle Cabin territories are defined in various ways depending on the location type. For suburban areas, a typical territory is a three-mile radius around the business address, while urban locations usually have a territory covering three to five city blocks. For businesses located at ski resorts, the territory is defined by the address of the ski resort itself. The specific territory for a Waffle Cabin restaurant is determined on an individual basis, considering factors such as minimum household numbers, average home prices, and household incomes. Trailer/Truck operations, however, do not receive a defined territory.

Staffing Notes

Waffle Cabin requires franchisees to designate an individual to serve as the General Manager for the Waffle Cabin business. This General Manager must be approved by Atomium, Inc. and is responsible for the daily supervision and management of the business, devoting full-time and best efforts to this role. Franchisees who are individuals are encouraged to serve as their own General Manager and must be actively involved in the daily operation of their Waffle Cabin business. If a franchisee operates multiple Waffle Cabin locations, they must maintain active oversight of all their businesses. All managers and other employees designated by Atomium, Inc. must be ServSafe (or similar) certified. Up to four individuals, including up to three principals and the General Manager, must complete Atomium, Inc.'s initial training program before the Waffle Cabin business opens. Additionally, any personnel who will have access to Atomium, Inc.'s proprietary and confidential information must sign a Confidentiality and Non-Competition Agreement.