Frequently Asked Questions
What are the financial qualifications for becoming a broken yolk franchisee?
You will need $1.5 million net worth and $500k liquidity per store. These amounts are for qualification purposes and are not necessarily indicative of the cost of building a Broken Yolk Cafe.
Can the franchisee be a partnership?
Yes, you may form a partnership for the purposes of operating a Broken Yolk Café. Each member of the partnership will be required to sign and abide by the terms of the franchise agreement.
I don’t know how to operate a restaurant. Is this a problem?
If you lack foodservice or retail management experience, you can bring in an operations partner as a co-franchisee.
How much is the franchise fee?
The franchise fee is $35,000 and is payable when the franchise agreement is signed.
How Much Are the Royalty and Advertising Fees?
The royalty is 4% of gross sales and the marketing fund fee is 1% of gross sales. Both are paid electronically on a monthly basis. You will also spend an additional 2 – 4% of gross sales on local marketing for your specific restaurant.
How is the advertising fee used?
The advertising fees are used for creating and producing commercial media advertising, coupon and local store marketing templates, graphic design, social media management, public relations and other promotions intended to build overall brand awareness.
How much money can I make operating a broken yolk café?
Our average annual store volume for the 26 restaurants open the entire year of 2018 was $1.9 million. More detailed financial information is listed in the FDD under Item 19. Federal and state laws prohibit any franchisor from providing projected earnings figures, but you may talk with our existing franchisees who can share their information and experience with you.
Source: 2018 Broken Yolk Cafe FDD, Item 19. If you open a Broken Yolk Cafe, your annual revenue may be higher or lower than these figures.
I have no experience finding and leasing commercial property. Will broken yolk help me?
Yes. You will be introduced to a commercial real estate broker who can help you locate potentially suitable sites. Our staff is very experienced with commercial leasing including site review, tenant work letters and letters of intent. While we will review the documents, we cannot serve as legal counsel. A qualified real estate attorney or lease review company can assist with your lease transaction.
Do you offer one-store franchises?
We offer multi-unit (area development) agreements. Our typical area development agreement is for three to four stores which are built over a period of three to four years. Single store franchises are not common within our system but are available.
How is the territory determined for a multi-store development agreement?
A development agreement requires a commitment to build three or more stores over a designated period of time. The overall size of the territory is based upon the number of stores that you and Broken Yolk agree that you will build. Using demographic and population mapping tools, Broken Yolk will work with you to define a territory that is large enough to hold the number of stores you have agreed to operate.
How long does it take to get a broken yolk café up and running?
The time needed to get up and running varies by the market place and is largely dependent upon real estate availability and permitting requirements. On average, once the permits are obtained, it takes approximately 3 – 4 months to design, construct and furnish the restaurant and open for business.