Eggs Up Grill Franchise in 2024: Costs, Fee & FDD

Eggs Up Grill is a rapidly growing breakfast, brunch, and lunch franchise that was founded in 1997 by restaurateur Chris Skodras in Pawleys Island, South Carolina. Its focus on creating a welcoming neighborhood vibe, where guests feel like family, has made it a favorite among locals. In 2018, the franchise was acquired by WJ Partners, which helped accelerate its expansion while maintaining the cozy, community-driven atmosphere. Eggs Up Grill is all about offering a simple, consistent, and delicious dining experience, making it a standout in the breakfast restaurant sector.

At its core, Eggs Up Grill specializes in classic breakfast staples like eggs, pancakes, and omelets, along with brunch and lunch offerings like sandwiches and salads. They also feature a range of healthier options, catering to a wide demographic that includes families, retirees, and professionals looking for a hearty yet affordable meal. The franchise has carved out a niche in suburban and mid-sized communities, appealing to early risers and brunch enthusiasts alike. The emphasis is on fresh ingredients and friendly service, which keeps the loyal customer base coming back.

As of now, Eggs Up Grill operates over 60 locations, predominantly in the southeastern U.S. This regional focus allows it to establish a strong brand presence in smaller markets, where demand for affordable, high-quality breakfast options is high. The brand’s growth is impressive, with plans to expand further across the country. Eggs Up Grill prides itself on being a community-oriented business, and its loyal customer base reflects this ethos.

Franchisees are provided with comprehensive support, including a robust training program that covers everything from restaurant management to brand consistency. Eggs Up Grill offers ongoing marketing support and operational guidance to help franchisees succeed. Their business model is designed to be simple, efficient, and scalable, making it an attractive option for investors looking for a strong franchise with proven potential.

Eggs Up Grill Franchise Insights

1. Eggs Up Grill has over 60 locations, with plans to expand further across the southeastern U.S., providing ample growth potential for franchisees in underserved markets.
2. Each location serves hundreds of guests per day, highlighting the brand’s strong community presence and consistent customer traffic.
3. Eggs Up Grill’s simplified menu and operational model allow franchisees to operate with fewer staff during off-peak hours, enhancing efficiency and cost management.

Eggs Up Grill Franchise Key indicators

How much does it cost to open an Eggs Up Grill franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening an Eggs Up Grill franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening an Eggs Up Grill franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Eggs Up Grill below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open an Eggs Up Grill franchise, the required capital involves both the initial investment costs and a net worth requirement set by the franchise. Let’s take a closer look below:

• Initial Investment The total estimated initial investment for an Eggs Up Grill ranges from $753,000 to $988,000. This includes expenses like the franchise fee, restaurant build-out, equipment, initial inventory, and additional funds for initial operating costs. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets Requirement Eggs Up Grill typically requires franchisees to have a minimum of $250,000 in liquid assets. This ensures the franchisee has sufficient capital to manage startup costs, working capital needs, and any unforeseen expenses during the first months of operation.
• Net Worth Requirement Franchisees are usually expected to have a net worth of at least $500,000. This figure includes the value of your assets (like real estate, investments, and personal property) minus any liabilities, ensuring financial stability throughout the franchise ownership process.

How much does an Eggs Up Grill franchise owner make?

Calculating the salary of an Eggs Up Grill franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of an Eggs Up Grill franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Eggs Up Grill Revenue & Gross Sales

Based on the most recent analysis, Eggs Up Grill franchises have a median gross sales of $1,276,873. This solid financial performance highlights the brand’s consistent consumer demand and offers franchisees a promising opportunity for significant revenue generation in the breakfast and brunch sector.

Which key factors impact the average revenue performance of Eggs Up Grill franchisees?

The strong performance of Eggs Up Grill franchisee median gross sales can likely be attributed to a combination of factors. First, the growing popularity of breakfast and brunch dining in the U.S. has increased consumer demand, particularly for casual, affordable options like Eggs Up Grill. Additionally, the franchise’s focus on creating a welcoming, community-centered atmosphere attracts repeat customers, which drives consistent sales. The brand’s expansion into suburban markets, where competition is less saturated, has also helped boost revenue. Moreover, the operational simplicity of the menu and efficient service model allows franchisees to maintain high traffic while keeping operational costs manageable, contributing to improved profitability year over year.

Eggs Up Grill Franchise Operational Costs

Operational costs for a franchise like Eggs Up Grill are the ongoing expenses required to run the day-to-day operations of the business. These costs are essential for maintaining smooth operations and ensuring the business’s long-term success. For an Eggs Up Grill franchise, operational costs include:

• Food and Beverage Costs The expenses incurred from purchasing fresh ingredients like eggs, meats, vegetables, and beverages required to prepare the franchise’s signature breakfast, brunch, and lunch items.
• Labor Costs Wages, salaries, and benefits for employees, including kitchen staff, servers, and managers who ensure consistent service and smooth restaurant operations.
• Rent or Mortgage Payments The cost of leasing or owning the restaurant property, including monthly rent or mortgage payments, property taxes, and necessary insurance.
• Utilities Expenses for electricity, water, gas, and internet, all crucial for running the kitchen, dining area, and back-office systems efficiently.
• Maintenance and Repairs Costs associated with keeping the kitchen equipment, dining areas, and building infrastructure in good working order, including both routine maintenance and unexpected repairs.
• Supplies and Inventory This covers everything from kitchen supplies and cleaning products to uniforms, disposable packaging, and office supplies necessary for daily operations.

Planning and managing these ongoing operational costs are critical for the financial health and profitability of your Eggs Up Grill franchise.

Eggs Up Grill Franchise Fees

When considering an Eggs Up Grill franchise, it’s important to understand the ongoing fees involved, which cover a variety of operational aspects to help support the brand and its systems. Below are some of the key fees to expect:

• Royalty Fee Franchisees are required to pay 5% of Gross Sales on a weekly basis. This fee helps maintain brand support and ongoing operational assistance. Gross Sales include most revenue streams, excluding taxes and documented refunds.
• Technology Fee Currently set at approximately $100 per week, this fee covers the use and maintenance of the franchise’s technology systems. It is paid alongside the royalty fee on a weekly basis.
• Additional Fees There may be other fees not listed here that could arise as part of ongoing franchise operations, such as marketing contributions, training costs, or unexpected technology updates.

Carefully planning for these ongoing fees is crucial for managing your finances and ensuring the long-term success of your franchise.

Eggs Up Grill Franchise Earnings

As an Eggs Up Grill franchisee, the median gross sales for a location are $1,276,873, offering a strong revenue potential for owner-operators. Based on industry standards and the franchise’s financial data, an owner-operator can expect to earn around 10% of gross sales, which equates to approximately $127,687 annually. This is based on industry operating profit margins. This figure provides a clear picture of the earning potential for those directly involved in managing the day-to-day operations of their franchise.

Being an owner-operator not only allows for greater control over operational costs but also maximizes profitability by minimizing additional management expenses. With a steady customer base and consistent sales, franchisees can build a stable, lucrative business while benefiting from the support and established reputation of the Eggs Up Grill brand.

How to Open a Eggs Up Grill Franchise

The process of becoming an Eggs Up Grill franchisee involves several key steps, beginning with the initial inquiry and leading to the opening of your restaurant. Here’s an overview:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Franchise Applicatio Once your inquiry is reviewed, you’ll be invited to complete a formal franchise application. This step involves sharing more detailed information about your financial background, experience, and commitment to running a franchise.
3. Discovery Day If you’re still interested, you’ll be invited to attend a “Discovery Day” at the Eggs Up Grill headquarters. This is an opportunity to meet the leadership team, tour the facilities, and learn more about the business model and expectations for franchisees.
4. Approval and Agreement After Discovery Day, the franchisor will review your qualifications and make a final decision. If approved, you’ll sign the franchise agreement, officially becoming a franchisee.
5. Site Selection and Build-Out Once the agreement is signed, you’ll work with the franchisor to select an ideal location for your restaurant. The build-out phase includes designing and constructing the restaurant according to Eggs Up Grill’s specifications.
6. Training You and your team will participate in a comprehensive training program covering operations, management, customer service, and marketing to ensure a smooth launch.
7. Grand Opening and Start of Operations After the build-out and training are complete, you’ll host a grand opening event to introduce your Eggs Up Grill to the community. From there, you’ll begin day-to-day operations with ongoing support from the franchisor.

Pros & Cons

Pros

Strong Brand Reputation: Eggs Up Grill has built a solid reputation in the breakfast and brunch sector, offering a community-focused, family-friendly dining experience that attracts a loyal customer base.

Simplified Menu and Operations: The straightforward menu allows for easier management of food costs and labor, improving operational efficiency.

Growing Market Demand: Breakfast dining continues to grow in popularity, providing a strong market for this type of franchise.

Cons

Regional Focus: Currently concentrated in the southeastern U.S., the franchise might be less appealing if you are in a region outside their target expansion areas.

Lower Margins in Full-Service Dining: Like many full-service restaurants, labor costs and food expenses can affect profitability, requiring careful cost management.

Competition in the Breakfast Segment: The breakfast market has grown, but it’s also highly competitive, with well-established brands and local diners vying for similar customers.