About Eggspectation Franchise
Eggspectation is an upscale casual full service restaurant franchise specializing in gourmet egg dishes for breakfast and brunch, along with a complete lunch and dinner menu and a full service bar.
Locations typically range from 4,000 to 6,000 square feet and can be found in strip shopping centers, standalone buildings, urban and suburban office buildings, hotels, and mixed use complexes.
The brand has been franchising since 2006 under parent company 898 3984 Canada, Inc.
Eggspectation Franchise Cost & Fees
Minimum Investment
$1.4M
Average Investment
$1.7M
Maximum Investment
$2.0M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 5% of Aggregate Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Aggregate Sales (Marketing Fund); Up to 2% of Aggregate Sales (Cooperative Advertising) | National brand fund |
| Total Investment Range | $1,385,000 – $1,965,000 | Includes build-out, inventory, working capital |
The investment range of $1.4M–$2.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Aggregate Sales) and marketing fee (Up to 2% of Aggregate Sales (Marketing Fund); Up to 2% of Aggregate Sales (Cooperative Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (2) | $50,000 | $50,000 |
| Leasehold Improvements (3) | $600,000 | $900,000 |
| Lease Payments and other rental expenses (4) | $0 | $0 |
| Kitchen Equipment (5) | $275,000 | $375,000 |
| Furniture, Fixtures and Furnishings (6) | $200,000 | $250,000 |
| Signage & Lighting (7) | $50,000 | $75,000 |
| Initial Inventory (8) | $30,000 | $35,000 |
| Architectural/ Engineering (9) | $50,000 | $60,000 |
| POS and Computer Equipment (10) | $25,000 | $40,000 |
| Travel, lodging and meals for training (11) | $10,000 | $20,000 |
| Business/ Office Supplies (12) | $2,500 | $5,000 |
| Business licenses, permits, etc. (for first year) (13) | $7,500 | $10,000 |
| Insurance deposits and premiums (for first year) (14) | $10,000 | $20,000 |
| Grand Opening Advertising | $5,000 | $15,000 |
| Professional Fees | $10,000 | $20,000 |
| Other Fees (utility hookup; seat fees) | $10,000 | $15,000 |
| Additional Funds – Three Months (15) | $50,000 | $75,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 25% of the initial franchise fee then being charged to franchisees (or greater amount to reimburse costs); $15,000 under Area Development Agreement |
| Renewal Fee | 50% of then-current Initial Franchise Fee |
| Audit Fee | Cost of audit (if understatement > 5% or underpaid Royalty Fees by $4,000+) |
| Interest | The greater of 12% or 8 points above the Prime Rate, or the maximum rate allowed by applicable law if less (4) |
| Support Fee | $2,000 per week, plus Our out-of-pocket expenses (e.g., travel, lodging) |
| Site Evaluation | $1,500 per visit, plus expenses |
| Inspection and Testing | Cost of inspection or testing |
| Late Financial Statement Fee | $200 per week delinquent |
| Late Payment or Sales Reporting Fee | $50 per day You are late |
| Manual Replacement Fee | $500 per copy |
| Prohibited Item Fee | $100 per day for each day that you offer or sell any food or beverage items or other products that we have not approved for your Restaurant, with the minimum such fee being $1,000. |
| Public Offering | $25,000 or such greater amount as is necessary to reimburse Us for Our reasonable costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately nine (9) weeks |
| Classroom Training | 44 - 48 hours |
| On-the-Job Training | 218 - 224 hours |
| Training Location | Owings Mills, Maryland |
| Additional Training | Initial training for the first Operating Principal and General Manager is provided at no charge (excluding franchisee's travel, lodging, meals, and wages). Additional personnel training is $2,500 per person plus expenses. Remedial training is $350 per trainer per day plus expenses. Franchisee is responsible for staff travel, lodging, meals, and wages for additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | No less than a one-mile radius |
| Description | For a single Restaurant, the Franchise Agreement grants the right to operate at a single approved location within an "Assigned Area" covering no less than a one-mile radius. The franchisor and its affiliates will not establish another Eggspectation Restaurant within this Assigned Area, excluding non-traditional venues (e.g., airports, stadiums). The franchisor can advertise and promote the system and sell collateral products or food/beverage services under other names/marks within the Assigned Area. For an Area Development Agreement, a "Territory" is assigned to develop three or more restaurants, covering no less than a one-mile radius, with limited exclusivity, but the franchisor retains the right to operate company-owned restaurants in non-traditional venues within any Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years (for new Eggspectation restaurants); 10 years (for successor franchise agreement) |
| Renewal Term | 10-year terms |
| Renewal Fee | 50% of then-current Initial Franchise Fee |
| Renewal Conditions | Franchisee must give 12-18 months notice, not be in default, repair/replace/update equipment and premises (up to $500,000 adjusted for CPI), satisfy all monetary obligations, sign the then-current franchise agreement (which may have different terms/conditions, including higher royalty/ad fees), sign a general release, and comply with current qualification/training requirements. |
| Transfer Fee | 25% of the initial franchise fee then being charged to franchisees (or greater amount to reimburse costs); $15,000 under Area Development Agreement |
| Transfer Conditions | All accrued monetary obligations satisfied, not in default, transferor and principals execute general release, transferee meets franchisor's criteria (business judgment, educational, managerial, business standards, moral character, business reputation, credit rating, aptitude, financial resources, capital), transferee assumes obligations and guarantees performance, transferee executes then-current development agreement and ancillary agreements, transferor remains liable for pre-transfer obligations, transferee pays transfer fee, development completed (for Area Development). |
| Termination for Cause | Franchisor may terminate for cause if franchisee fails to cure certain defaults (e.g., public health/safety danger, non-payment, unauthorized Mark use, insurance failure, false records) within specified periods (48 hours, 5 days, 72 hours, 7 days, 30 days), or immediately for non-curable defaults (insolvency, bankruptcy, unauthorized sales, unapproved location, failure to remodel/open, abandonment, felony conviction, transfer without consent, false books/records, repeated material defaults). |
| Non-Compete Period | During the term of the franchise agreement, and for two (2) years after termination/expiration/transfer. |
| Non-Compete Details | During term: Prohibited from diverting business, participating in similar business within the US/worldwide where franchisor has rights. Post-term: Prohibited from diverting business, employing franchisor/affiliate/franchisee personnel (within 90 days), operating/owning/being employed by competitive business within 10 miles of former location or any existing/under-construction Eggspectation Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must designate and retain an "Operating Principal" who will devote substantial full time and best efforts to supervision and performance. If the franchisee is an entity, the Operating Principal must be one of the owners, designated as a "Controlling Principal," holding at least 10% ownership. A General Manager is also required for each restaurant, responsible for daily operations and management, and must devote full-time efforts. |
| Required Suppliers | coffee, soft drinks, bacon, sausage, pancake mix, waffle mix, crepe mix, grits, corned beef, steak, lamb, ham, lobster, squid, avocado, Caesar salad dressing, Lemon Aioli, pasta, tomato sauce, Hollandaise sauce, House salad dressing, bread for French toast, buns for burgers and sandwiches, and Ciabatta bread; point of sale system (customer payment interface), music control, recipe management, security camera and alarm system, lighting control system, uniforms, marketing materials, and menus. |
| Supply Restrictions | Franchisee must purchase or lease and install all fixtures, furnishings, equipment, decor items, signs, and related items conforming to franchisor's standards. Certain food and beverage ingredients must be purchased from a single source or under private label. Specific equipment and non-food products must be purchased from specified sources. All food and beverage items, ingredients, supplies, materials, fixtures, furnishings, and equipment must be obtained from approved suppliers who meet franchisor's standards and specifications. Franchisor may designate itself or an affiliate as an approved or exclusive supplier. |
| Franchisor Revenue from Suppliers | $7,825 in rebates (0.65% of total revenue) from suppliers of packaging and other materials in 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer, either directly or indirectly, any financing arrangements to you. We do not guarantee your notes, leases or other obligations. |
Eggspectation Franchise Earnings — Item 19
Average Revenue
$262K
Median Revenue
$240K
Revenue Range
$128K – $550K
Sample Size
6 units
Past financial performance does not guarantee future results. Individual results will vary.
Eggspectation Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Eggspectation System Growth
Total Units
8
Franchised
7
Company-Owned
1
Eggspectation currently operates 7 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 1 | 2 | 7 |
| 2021 | 0 | 0 | 7 |
| 2022 | 2 | 1 | 8 |
Transfers: 0 | Closures: 2
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1.0M
Net Income
$-349,996
Total Assets
$1.3M
Audited by Gorfine Schiller Gardyn for year ending December 31.
Eggspectation Franchise — FAQ
The total investment to open a Eggspectation franchise ranges from $1,385,000 to $1,965,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Eggspectation charges a royalty fee of 5% of Aggregate Sales of gross sales, plus a Up to 2% of Aggregate Sales (Marketing Fund); Up to 2% of Aggregate Sales (Cooperative Advertising) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Eggspectation Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Eggspectation to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Eggspectation franchise owners report average revenue of $262K and median revenue of $240K. This is based on a sample of 6 units. Past performance does not guarantee future results.
Eggspectation has been franchising since 2006. The FDD shows an investment range of $1,385,000-$1,965,000, a 5% of Aggregate Sales royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $1,385,000 to $1,965,000 depending on location size and market. A minimum of $1,233,100 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Eggspectation and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Eggspectation or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com