About The Toasted Yolk Franchise
The Toasted Yolk Cafe is a casual dining franchise specializing in all day breakfast, brunch, and lunch with a menu of proprietary items made fresh daily.
Franchising since 2016, the brand targets upper and middle income households seeking a premium breakfast and brunch experience, with each location operating within a limited area.
The initial franchise fee is $50,000.
The Toasted Yolk Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000.00 | One-time payment upon signing |
| Royalty Fee | 5% of weekly Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% to 2% of monthly Gross Revenue for local advertising; 0.5% to 2% of weekly Gross Revenue for Brand Fund Contribution | National brand fund |
| Total Investment Range | $1,058,000 – $1,721,700 | Includes build-out, inventory, working capital |
The investment range of $1.1M–$1.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of weekly Gross Revenue) and marketing fee (1% to 2% of monthly Gross Revenue for local advertising; 0.5% to 2% of weekly Gross Revenue for Brand Fund Contribution) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Your Training Expenses | $12,000 | $18,000 |
| Grand Opening Training | $40,000 | $45,000 |
| Premises Lease Deposits | $20,000 | $42,000 |
| Utilities Deposits | $2,000 | $5,000 |
| Architect and Design Fees | $23,000 | $35,000 |
| Leasehold Improvements, Construction and/or Remodeling | $400,000 | $900,000 |
| Furniture, Fixtures and Equipment | $325,000 | $350,000 |
| Signage | $20,000 | $40,000 |
| Business Licenses and Permits | $12,000 | $15,000 |
| Computer Systems | $0 | $3,200 |
| Initial Inventory to Begin Operating | $22,000 | $25,000 |
| Professional Fees | $3,000 | $7,000 |
| Grand Opening Advertising | $21,500 | $26,500 |
| Insurance | $2,500 | $5,000 |
| Smallwares | $30,000 | $30,000 |
| Operating Expenses / Additional Funds – 3 months | $75,000 | $125,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current initial franchise fee (with exceptions for existing franchisees, internal transfers, and transfers due to death/disability) |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Technology Fee | Approximately $100 per month (Internal Systems Fee); $1,000 monthly (Software/Applications Fees) |
| Audit Fee | Cost of examination plus related expenses (if understatement by 2% or more) |
| Late Charge | $75 |
| Interest Charge | 1.5% per month from due date, or maximum allowed by law |
| Non-Sufficient Funds Fee | $100 |
| Remedial Training Fee | Then-current trainer per diem rate plus expenses ($350 per day plus travel and other expenses) |
| Quality Review Services | Varies |
| Indemnification | Amount of loss or damages plus costs |
| Reimbursement of Cost and Expenses for Non-compliance | Actual costs and expenses |
| Reimbursement of legal fees and expenses | Our costs and expenses, including but not limited to attorneys’ fees |
| Confidential Operating Manual Replacement Fee | $250, or our then-current fee |
| Insurance Reimbursement | Amount paid by us for your insurance obligations, plus a reasonable administrative fee |
| Taxes | Amount of taxes |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 days for franchisee, 48 days for managers |
| Classroom Training | 25 hours for franchisee, 48 hours for managers |
| On-the-Job Training | 25 hours for franchisee, 420 hours for managers |
| Training Location | Houston, TX area and/or Sarasota, FL area, or a location we designate |
| Additional Training | Mandatory or optional additional training programs may be offered, up to three (3) days per year, at a designated location. Franchisees must also attend an annual business meeting or conference for up to three (3) days per year at a designated location. Fees may be imposed for additional training programs, and franchisees are responsible for incidental expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Limited Protected Territory |
| Exclusive Territory | No |
| Territory Size | The scope and size of the Territory will be in our sole discretion, based on factors such as general location, traffic patterns, parking availability, size of site, building type, access, visibility, area demographics, population density, surrounding area commercial activity, and market demands. At a minimum, the Territory may be limited to the outlet premises or the retail building where it is located. |
| Description | The franchisee operates one The Toasted Yolk Cafe® outlet within a limited protected territory defined after site approval. The franchisor will not open or authorize other The Toasted Yolk Cafe® outlets within this territory while the franchisee is in compliance. However, the franchisor reserves rights to sell products/services through alternative distribution channels (e.g., retail outlets, e-commerce, captive market locations) within the territory, and the franchisee does not receive an exclusive customer base. The franchisee will not receive an exclusive territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two 5-year terms |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Renewal Conditions | To renew, the franchisee must be in full compliance with the agreement, have no more than three (3) events of default during the current term, provide written notice six months before term end, execute a new franchise agreement, pay the successor agreement fee, have the right to occupy premises or approved relocation, remodel the business, execute a general release, and comply with current training requirements. |
| Transfer Fee | 75% of the then-current initial franchise fee (with exceptions: 50% for existing franchisees in good standing; $1,500 for ownership interest transfers among existing shareholders/members or to add a new shareholder/member that doesn't change management control; no fee for transfers to spouse, parent, or child upon death or permanent disability) |
| Transfer Conditions | Conditions for franchisor approval of a transfer include: franchisor's decision not to exercise right of first refusal; transferee meets current franchisee standards; transferee signs current franchise agreement (which may have different terms); transferee and general manager complete Initial Training Program; all amounts owed to franchisor and third-party creditors are paid; franchisee and transferee sign a general release; franchisee subordinates claims against transferee to franchisor; franchisor approves material terms/conditions of transfer; and lessor consents to lease assignment/sublet. |
| Termination for Cause | Automatic termination for insolvency, bankruptcy, inability to pay debts, receivership, unsatisfied judgments, dissolution, or foreclosure. Termination upon notice for misrepresentation, failure to acquire site/open business, falsifying reports, ceasing operations, losing possession of premises, failure to restore business after casualty, non-compliance with laws (e.g., alcohol licenses, taxes), lease defaults, understatement of Gross Revenue (two or more times), non-compliance with insurance/indemnification, unauthorized transfer, failure to transfer upon death/disability, felony conviction, adverse judgment for fraud/racketeering, concealing revenues/false books, public health/safety threat, refusal of inspection/audit, unauthorized use of Marks/Confidential Information, non-compliance with non-competition covenants, or three or more defaults (or two in 12 months). |
| Non-Compete Period | 24 months after termination or expiration of the Franchise Agreement |
| Non-Compete Details | During the term of the franchise, franchisee and principals cannot divert customers, participate in a competitive restaurant/eatery business (deriving >20% gross receipts from eggs/pancakes/waffles/breakfast items or closing before 6 p.m.), or engage in acts harmful to the Marks/System. After termination/expiration, for 24 months, they cannot divert customers, participate in a competitive business within 25 miles of the former outlet or any other Toasted Yolk Cafe® location, or engage in acts harmful to the Marks/System. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The Franchise Agreement requires the franchisee to either personally supervise and manage the day-to-day operation of the Franchised Business or hire a qualified general manager. If a general manager is hired, they must receive prior written approval from the franchisor, successfully complete the Initial Training Program and all other required training courses, and devote full time to the job without having an interest or business relationship with competitors. If the franchisee is a business entity, its manager is not required to have an equity interest in the entity. |
| Required Suppliers | Franchisee must purchase all inventory, equipment, computer systems and certain software from designated suppliers and contractors or in accordance with franchisor specifications. A designated real estate broker (or approved alternative) must be used for site selection services. Franchisor maintains written lists of approved items and designated suppliers/contractors. |
| Supply Restrictions | Franchisor maintains written lists of approved items of equipment, fixtures, inventory and supplies (by brand name and/or by standards and specifications) and a list of designated suppliers and contractors for those items. These lists are updated periodically and issued to all franchisees. Franchisor reserves the right to change requirements for furniture, fixtures and equipment at any time. Franchisee must request prior written approval for unapproved items or suppliers, which may require inspection and testing at franchisee's cost. |
| Franchisor Revenue from Suppliers | During its fiscal year ending December 31, 2024, the franchisor did not receive any revenue, rebates, discounts, or other material consideration from suppliers based on required purchases or leases by its franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf. |
The Toasted Yolk Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
The Toasted Yolk Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Toasted Yolk System Growth
The Toasted Yolk currently operates 36 franchised locations and 6 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 8 | 0 | 21 |
| 2023 | 9 | 1 | 29 |
| 2024 | 9 | 2 | 37 |
Transfers: 2 | Closures: 2
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by The Rascon CPA Firm PLLC for year ending December 31.
The Toasted Yolk Franchise — FAQ
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