Eggs Up Grill franchise
The franchisee develops and operates a single Eggs Up Grill family restaurant at an approved site, typically 2,800 to 3,200 square feet, serving breakfast and lunch food and beverages; a beer and wine license is required to sell beer and wine.
Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill)
- Document
- FDD 2026, issued 2026-05-14
- Item
- Item 15
- Page
- PDF p. 42
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641739
An entity franchisee must name a Managing Owner holding at least 25% of its ownership and voting power, subject to franchisor approval, who is responsible for managing and supervising the restaurant. The franchisee may instead choose not to supervise full-time by appointing a Designated Manager who has completed the franchisor's initial training program. That manager must work full-time and may not hold any other role involving significant management responsibility or time commitment, so the arrangement is a trained full-time manager rather than a passive or semi-absentee model.
What stands out
- Total initial investment of $821,500 to $1,141,000 for a leased restaurant, including a $45,000 franchise fee; real estate purchase and debt service are excluded, and the franchisor offers no financing.
- Ongoing fees: 5% royalty, 1.6% Brand Promotion Fund and at least 0.4% local advertising, all weekly, plus $82 per week for technology; total required marketing is capped at 4% of Gross Sales and the technology fee at $200 per week.
- Item 19 discloses average gross sales of $1,371,585 and median $1,334,340 for the 12 months to March 31, 2026, across 91 franchised restaurants open the entire period, with a range of $752,595 to $2,407,120.
7 more observations
- Item 19 also discloses EBITDA of 17.6% of sales, but only for 62 restaurants that reported complete cost data; that subgroup averaged $1,407,585 in sales, above the full group, and EBITDA excludes interest, taxes, depreciation, amortization and debt service.
- Item 20 shows 47 franchised openings over 2023–2025, franchised units rising 58 to 104, with zero terminations, zero reacquisitions, zero other closures and one non-renewal; 11 transfers occurred and 27 signed agreements were awaiting opening at year-end 2025.
- No exclusive territory under the Franchise Agreement; the franchisor reserves the right to open or license restaurants anywhere and owes no compensation for competing.
- The franchisor estimates 75% to 85% of the initial investment and of ongoing spending is directed to restricted suppliers, and it earned $322,154 in vendor rebates on franchisee purchases in fiscal 2025.
- The 10-year term is adjusted to match the premises lease expiry; every owner must personally guarantee the agreement, and a non-owner spouse must sign for confidentiality and non-competition purposes.
- Items 3 and 4 disclose no litigation and no bankruptcy.
- A trained full-time Designated Manager may run the restaurant in place of the owner, but the Managing Owner must hold at least 25% of the equity and voting power.
Things to verify
- Ask why 29 of the 91 seasoned restaurants did not report complete cost data, and what their EBITDA looked like; the 62-restaurant cost group has higher average sales than the full set.
- Model the gap between EBITDA and cash flow: at an $821,500 to $1,141,000 build-out, interest, principal and any owner salary all sit below the 17.6% EBITDA line.
- Confirm what a landlord will actually contribute, since Item 7's build-out estimate assumes recent tenant improvement allowances of $35 to $40 per square foot that are not guaranteed.
6 more questions
- Clarify how the initial term will be set, because it is amended to match the lease expiry rather than fixed at 10 years.
- Ask what the franchisor's plans are for the Brand Promotion Fund and local advertising percentages, both of which can rise to the 4% aggregate cap.
- Confirm whether an Area Development Agreement is on offer, and how the 9-to-12-month opening schedule interacts with site availability, since missing it is a material breach.
- Ask which vendors are designated and what rebate the franchisor receives on each, given the 75% to 85% restricted-spend estimate.
- When calling franchisees from Exhibits D and E, note that Item 20 says some have signed provisions restricting what they may say about the system.
- Ask whether any minimum liquidity or net worth is required, since the reviewed document states none.
Category cost placeholders, not a forecast. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
An Eggs Up Grill franchisee builds out and runs one family restaurant of roughly 2,800 to 3,200 square feet serving breakfast and lunch, at a site the franchisor approves. Item 7 estimates the total initial investment for a leased location at $821,500 to $1,141,000, including a $45,000 initial franchise fee and three months of additional funds; the largest single item is $440,000 to $615,000 for architecture and leasehold improvements. Real estate purchase is not included, and the franchisor does not finance the investment. Of the total, $71,000 goes to the franchisor or its affiliates. A separate Area Development Agreement, offered at the franchisor's election, costs $25,000 per restaurant committed, typically $50,000 to $125,000 for 2 to 5 restaurants.
Ongoing fees are a 5% royalty on Gross Sales collected weekly, a 1.6% Brand Promotion Fund contribution, at least 0.4% of Gross Sales on local advertising, and a technology fee of $82 per week. Required marketing spend of all kinds is capped in aggregate at 4% of Gross Sales, and the technology fee is capped at $200 per week. A $2,500 annual conference fee applies whether or not the owner attends. Transfer and renewal each cost 50% of the initial franchise fee. The franchisor estimates that 75% to 85% of both the build-out and ongoing spending goes to restricted suppliers, and it collected $322,154 in vendor rebates on franchisee purchases in fiscal 2025, 3.33% of its total revenue.
Item 19 is unusually detailed. For the 12 months to March 31, 2026 it reports average gross sales of $1,371,585 and a median of $1,334,340 across 91 franchised restaurants open the whole period, with a high of $2,407,120 and a low of $752,595; 38 of the 91 reached the average. A second section gives cost ratios and EBITDA of 17.6% of sales, but only for the 62 restaurants that supplied complete cost data, a self-selected group whose average sales run higher than the full set. No figure in Item 19 is net income: EBITDA is stated before interest, taxes, depreciation, amortization and debt service, which matter a great deal at this investment level. Nothing is disclosed about new restaurants, and no minimum liquidity or net worth requirement is disclosed in the reviewed source.
Item 20 shows steady growth with almost no attrition. Franchised restaurants went from 58 at the start of 2023 to 104 at the end of 2025, with 47 openings, no terminations, no reacquisitions, no closures for other reasons and a single non-renewal in 2024; 11 restaurants transferred to new owners. One affiliate-owned or managed restaurant existed throughout. The franchisor projects 21 new franchised openings in the next fiscal year and reports 27 signed agreements without an open restaurant. Items 3 and 4 disclose no litigation and no bankruptcy. The main legal features to weigh are the absence of any exclusive territory, a 24-month post-term non-compete within 10 miles, arbitration and suit in South Carolina, a personal guaranty from every owner with spousal consent binding marital assets, and Item 20's note that some franchisees have signed provisions limiting what they may say about the system.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 58 → 104 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $1,371,585 (disclosed) ÷ midpoint investment $981,250 = 1.40×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 87% of franchised units, clearly described (+1)
- Cost or profit data disclosed (+1)
- Franchisor Track Record
- Franchising 21 years (since 2005) · 105 outlets · Item 3: no litigation disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- The franchisor may — at its election — offer an Area Development Agreement under which the franchisee commits to develop a set number of restaurants on a sch… · Manager-run permitted
- Operational Intensity
- Manager-run permitted
Initial investment
FDD Items 5 and 7Format shown: Single Eggs Up Grill Restaurant under a Franchise Agreement, leased premises of approximately 2,800–3,200 sq ft
$821,500–$1,141,000 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $45,000 Disclosed
A 15% VetFran discount applies for honorably discharged veterans who will hold 51%+ ownership; not reflected in the standard new-franchisee fee. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $71,000 Derived
|
| Total initial investment — low | $821,500 Disclosed
The listed line items add exactly to this total. |
| Total initial investment — high | $1,141,000 Disclosed
The listed line items add exactly to this total. |
| Midpoint of range | $981,250 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill); we do not fill gaps with estimates or third-party figures. No minimum liquid capital requirement appears on the cover pages or in Items 1, 5, 7 or 15 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill); we do not fill gaps with estimates or third-party figures. No minimum franchisee net worth requirement appears in the reviewed document. The only net-worth reference is a Michigan state addendum provision about the franchisor's own net worth. |
The main Item 7 table assumes a leased restaurant of roughly 2,800–3,200 square feet; it does not include the purchase of real estate. Additional funds cover only the first three months of operation and exclude debt service on any financing. The franchisor states it does not offer financing for the initial investment. The second Item 7 table covers only the fee for development rights under an Area Development Agreement ($25,000 per restaurant, typically 2–5 restaurants) and is in addition to the full build-out cost of each restaurant.
Item 7 line items (13)
| Expenditure | Low | High |
|---|---|---|
| Franchise Fee — Lump sum on execution, paid to the franchisor. | $45,000 | $45,000 |
| Real Estate, Permits, Deposits, Legal — Assumes a leased site; includes amounts typically due to a landlord on lease execution, permits, utility deposits, legal and accounting fees, and the cost of a beer and wine license. | $7,000 | $12,000 |
| Architecture & Leasehold Improvements — Franchisor states landlords have recently been willing to give tenant improvement allowances of $35–$40 per square foot, with no guarantee. | $440,000 | $615,000 |
| Furniture, Fixtures and Equipment | $228,000 | $312,000 |
| Signage (Exterior) & Décor (Interior) | $11,500 | $25,000 |
| Computer Systems — Approved point-of-sale system including SaaS software, handhelds, tablets, server, KDS and related hardware. | $15,000 | $20,000 |
| Technology Setup Fee — Paid to the franchisor. | $1,000 | $1,000 |
| Opening Inventory | $10,000 | $13,000 |
| Franchisee & General Manager Related Expenses While Training | $8,000 | $18,000 |
| New Restaurant Opening Onsite Training Team Expenses — A $15,000 deposit is held by the franchisor and reconciled against an invoice within 30 days after opening. | $15,000 | $22,000 |
| Insurance Fees — Prepaid portion of the estimated first year's premiums. | $1,000 | $3,000 |
| Grand Opening Advertising — A $10,000 deposit is placed with the franchisor; the franchisor sets the spend, capped at $15,000 without the franchisee's consent. | $15,000 | $20,000 |
| Additional Funds — 3 months — Covers the first three months after opening; excludes debt service. | $25,000 | $35,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill) (table begins PDF p. 18) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (1)
| Format | Low | High | Fee |
|---|---|---|---|
| Area Development Agreement (development rights only, 2–5 restaurants) | $50,000 | $125,000 | — |
Ongoing fees
FDD Item 6Royalty
5% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill)
- Document
- FDD 2026, issued 2026-05-14
- Item
- Item 6 — Royalty
- Page
- PDF p. 12
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641739
Payable weekly. Gross Sales are all revenue from operating the restaurant, excluding sales/use/service taxes and documented refunds, credits and discounts; gift card amounts count when redeemed; retained tips are included.
Brand advertising fund
1.6% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill)
- Document
- FDD 2026, issued 2026-05-14
- Item
- Item 6 — Brand Promotion Fund
- Page
- PDF p. 13
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641739
Paid weekly with the royalty. The franchisor may change this percentage on notice, but total required marketing spend (Brand Promotion Fund plus required co-op contributions plus required local advertising) is capped at 4% of Gross Sales, and at 2% of Gross Sales during a restaurant's first 12 months of operation.
Local marketing
0.4% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill)
- Document
- FDD 2026, issued 2026-05-14
- Item
- Item 6 — Local Advertising
- Page
- PDF p. 13
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641739
The franchisor may require at least 0.4% of Gross Sales each week on local market promotion, and may raise it subject to the 4% aggregate marketing cap. It may also direct that these funds be paid instead to the Brand Promotion Fund, a co-op, or the franchisor.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 5% of gross sales Disclosed
Payable weekly. Gross Sales are all revenue from operating the restaurant, excluding sales/use/service taxes and documented refunds, credits and discounts; gift card amounts count when redeemed; retained tips are included. Payable weekly. Gross Sales are all revenue from operating the restaurant, excluding sales/use/service taxes and documented refunds, credits and discounts; gift card amounts count when redeemed; retained tips are included. |
|---|---|
| Advertising / brand fund | 1.6% of gross sales Disclosed
Paid weekly with the royalty. The franchisor may change this percentage on notice, but total required marketing spend (Brand Promotion Fund plus required co-op contributions plus required local advertising) is capped at 4% of Gross Sales, and at 2% of Gross Sales during a restaurant's first 12 months of operation. Paid weekly with the royalty. The franchisor may change this percentage on notice, but total required marketing spend (Brand Promotion Fund plus required co-op contributions plus required local advertising) is capped at 4% of Gross Sales, and at 2% of Gross Sales during a restaurant's first 12 months of operation. |
| Required local marketing | 0.4% of gross sales Disclosed
The franchisor may require at least 0.4% of Gross Sales each week on local market promotion, and may raise it subject to the 4% aggregate marketing cap. It may also direct that these funds be paid instead to the Brand Promotion Fund, a co-op, or the franchisor. The franchisor may require at least 0.4% of Gross Sales each week on local market promotion, and may raise it subject to the 4% aggregate marketing cap. It may also direct that these funds be paid instead to the Brand Promotion Fund, a co-op, or the franchisor. |
| Technology / software | $82–$200/week Disclosed
Currently $82 per week, payable weekly with the royalty. The franchisor may change the amount, subject to a stated cap of $200 per week. Some technology services may be offered separately for an additional fee. A one-time $1,000 technology setup fee is also payable before opening (Item 5). Currently $82 per week, payable weekly with the royalty. The franchisor may change the amount, subject to a stated cap of $200 per week. Some technology services may be offered separately for an additional fee. A one-time $1,000 technology setup fee is also payable before opening (Item 5). |
| Advertising cooperative | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill); we do not fill gaps with estimates or third-party figures. Participation in a local advertising cooperative is not currently required but may be required in future. If required, the contribution amount is set by majority vote of the Eggs Up Grill restaurants in the co-op area, so no amount is disclosed. Only co-op contributions up to 1% of Gross Sales count toward the 4% marketing cap unless the franchisor approves otherwise. |
| Transfer fee | 50% (see basis) Disclosed
50% of the initial franchise fee on a transfer of the Franchise Agreement or of a majority of the ownership interests in the franchisee; at the current $45,000 fee that equals $22,500. A transfer of a minority ownership interest instead requires reimbursement of the franchisor's expenses plus any training costs for the buyer. 50% of the initial franchise fee on a transfer of the Franchise Agreement or of a majority of the ownership interests in the franchisee; at the current $45,000 fee that equals $22,500. A transfer of a minority ownership interest instead requires reimbursement of the franchisor's expenses plus any training costs for the buyer. |
| Renewal fee | 50% (see basis) Disclosed
50% of the initial franchise fee, payable on approval of a successor franchise; at the current $45,000 fee that equals $22,500. 50% of the initial franchise fee, payable on approval of a successor franchise; at the current $45,000 fee that equals $22,500. |
| Royalty + ad fund (% of sales) | 6.6% Derived
|
Fee schedule (21 fees; 9 verified against the source, 12 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty | 5% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 12 | |
| Technology Fee | $82–$200 | weekly | Yes | verified (2-pass) | Item 6, p. 12 | Franchisor may modify the amount, capped at $200/week. Some technology services may be offered separately for an additional fee. |
| Brand Promotion Fund | 1.6%–4% of gross sales | weekly | Yes | verified (tie-break) | Item 6, p. 13 | Currently 1.6%; on notice the franchisor may change the percentage of Gross Sales attributable to each marketing vehicle, in all cases subject to the aggregate Marketing Cap. Item 6 note 2 confirms the 1.6% is the initial rate and that increases are bounded only by the Marketing Cap; the Item 6 remarks column defines the Marketing Cap as 4% of Gross Sales (2% in the first 12 months of operation). |
| Local Advertising | 0.4%–4% of gross sales | weekly | Yes | verified (tie-break) | Item 6, p. 13 | The franchisor may instead require these amounts be paid to it, its designee, the Brand Promotion Fund or a local advertising co-op. Local Advertising Cooperative contributions are set off against this requirement (Item 11, page 32). Item 11 (page 32) restates the 0.4% requirement and adds that any Local Advertising Cooperative contribution is set off against it, except where the franchisor instead collects the local spend itself and routes it to the Fund or a co-op, in which case the offsets do not apply. |
| Local Advertising Cooperative | Not stated | weekly | No | verified (2-pass) | Item 6, p. 13 | Applies only where a Local Advertising Cooperative has been established for the restaurant's area (none currently exist); only up to 1% of Gross Sales counts toward the Marketing Cap absent franchisor approval. |
| Annual Conference Fee | $2,500 | annual | Yes | verified (2-pass) | Item 6, p. 14 | Charged whether or not the Managing Owner attends; subject to up to 10% annual compounding increase; franchisee separately pays own travel/lodging/food costs. |
| Opening Training Expenses | $500 | one time | Yes | verified (tie-break) | Item 6, p. 14 | One time per Restaurant opening, invoiced within 10 days after the opening training; recurs only if the franchisee opens additional Restaurants. Verified in the Item 6 table on PDF page 14; Pass B simply omitted it. |
| Interest on Late Payment / Returned Payment Fee | Not stated | varies | No | single-pass | Item 6, p. 14 | Only accrues on past-due amounts or returned payments; not an ordinary-course operating cost. [Listed by one verification pass only (A); not independently confirmed.] |
| Transfer Fee – Franchise Agreement | Not stated | one time | No | single-pass | Item 6, p. 15 | Payable only if franchisor approves a transfer. [Listed by one verification pass only (A); not independently confirmed.] |
| Renewal Fee | Not stated | one time | No | single-pass | Item 6, p. 15 | Payable only if franchisee renews for a successor franchise. [Listed by one verification pass only (A); not independently confirmed.] |
| Inspection and Audit Fee | $1,000–$15,000 | per event | No | single-pass | Item 6, p. 15 | Only if franchisor inspects/audits because franchisee failed to report or understated Royalty/Brand Promotion Fund contributions by more than 2%; also covers re-inspection costs after a System Standards failure. [Listed by one verification pass only (A); not independently confirmed.] |
| Interim Operations Fee | 10% of gross sales | varies | No | single-pass | Item 6, p. 15 | Only if franchisor assumes management of the restaurant due to franchisee's failure to comply with the Franchise Agreement (Item 15). [Listed by one verification pass only (A); not independently confirmed.] |
| Product or Supplier Testing | Not stated | per event | No | single-pass | Item 6, p. 15 | Only if the franchisee requests approval of a new product or supplier. [Listed by one verification pass only (A); not independently confirmed.] |
| Architectural Review Fee | $1,000 | per event | No | single-pass | Item 6, p. 15 | Only if the franchisee requests approval of a new architect. [Listed by one verification pass only (A); not independently confirmed.] |
| Additional Training | $750 | per event | No | verified (tie-break) | Item 6, p. 16 | Only if additional or re-training is required or requested, or a Managing Owner/Designated Manager change occurs; initial training for up to 2 people is provided at no cost. Verified in the Item 6 table on PDF page 16; Pass B simply omitted it. |
| Insurance (franchisor-obtained on franchisee default) | Not stated | varies | No | single-pass | Item 6, p. 16 | [Listed by one verification pass only (A); not independently confirmed.] |
| Indemnification | Not stated | varies | No | single-pass | Item 6, p. 16 | Only if franchisor/affiliate is held liable for claims related to the franchisee's restaurant operations. [Listed by one verification pass only (A); not independently confirmed.] |
| Costs and Attorneys' Fees | Not stated | varies | No | single-pass | Item 6, p. 16 | Only if franchisee is found not to have complied and franchisor prevails in litigation/arbitration. [Listed by one verification pass only (A); not independently confirmed.] |
| Non-Compliance Charge | $100 | per event | No | single-pass | Item 6, p. 16 | Only on failure to comply with obligations (e.g., late fees/reports); in addition to other remedies. [Listed by one verification pass only (A); not independently confirmed.] |
| Lost Revenue Damages | Not stated | one time | No | single-pass | Item 6, p. 17 | Payable only if franchisor terminates the Franchise Agreement, or franchisee terminates it without cause. [Listed by one verification pass only (A); not independently confirmed.] |
| Hosted Software / POS IT Help Desk Services | $8,000 | annual | Yes | verified (2-pass) | Item 11, p. 33 | Mandatory recurring cost disclosed in Item 11 (Computer Hardware and Software), not in the Item 6 fee table; not currently reflected in the record's /fees/technology field. |
Royalty, Brand Promotion Fund and technology fees are all collected weekly. Required marketing spend of every kind is capped in aggregate at 4% of Gross Sales (2% during the first 12 months of operation). Item 6 also lists cost-reimbursement and default-triggered charges: product or supplier testing costs, a $1,000 architectural review fee if a new architect is proposed, insurance premium reimbursement (estimated at $12,000–$20,000 a year if the franchisor has to place cover), indemnification, the franchisor's costs and attorneys' fees if it prevails in a dispute, and lost revenue damages measured as the net present value of royalties and marketing contributions that would have accrued through the scheduled expiry date if the agreement is terminated early.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: Section I covers the 'Sales Group': 91 franchised Eggs Up Grill restaurants that were open and operating for the entire measurement period of April 1, 2025 through March 31, 2026. Of the 107 restaurants in operation on March 31, 2026, the franchisor excluded 1 affiliate-owned restaurant, 1 franchisee-owned restaurant that its affiliate managed for the final three months of the period, and 15 franchised restaurants that opened on or after April 1, 2025. Section II covers a narrower 'Cost and EBITDA Group' of 62 franchised restaurants — the Sales Group less 29 restaurants that did not supply complete cost and EBITDA data. All figures come from reports submitted by franchisees; no company-owned or affiliate-operated restaurant is included in either group.
Qualifications: The sales figures cover 91 of the roughly 105 restaurants that franchisees owned and operated at the end of the measurement period; the 15 restaurants opened during the period, one affiliate-owned restaurant, and one franchisee-owned restaurant that an affiliate managed for three months were all excluded, so the data describe seasoned units only. The cost and EBITDA figures rest on a smaller, self-selected group: 29 of the 91 restaurants did not supply complete cost data and were dropped, leaving 62. That group's average gross sales ($1,407,585) exceed the full Sales Group average, so the cost percentages are not drawn from a representative cross-section. All figures come from reports franchisees submitted to the franchisor; the document does not state that they were audited or independently verified. EBITDA is stated before interest, taxes, depreciation, amortization and debt service, and where an owner works as manager without pay the franchisor imputed a $60,000 salary into labor rather than using actual cost. The franchisor notes that rounding means category percentages may not sum exactly, and that medians of individual categories will not reconcile to the median EBITDA. The 'population share' figure of 86.7% recorded here is our arithmetic (91 of the 105 restaurants the document says franchisees owned and operated on March 31, 2026), not a franchisor statement. One printed value in the Bottom Half table, '$752,5295', appears to be a typographical error for the $752,595 low reported for the full Sales Group.
View full Item 19 disclosure and tables
Item 19 reports two things. First, actual gross sales for the 12 months ended March 31, 2026 across 91 franchised restaurants that were open the whole period: an average of $1,371,585, a median of $1,334,340, a high of $2,407,120 and a low of $752,595, with 38 of the 91 at or above the average. The figures are split into top and bottom halves, which averaged $1,609,507 and $1,138,836. Second, cost and EBITDA ratios for a narrower group of 62 restaurants that reported complete cost data: prime costs averaged 53.2% of sales, occupancy-related costs about 9.6%, and EBITDA 17.6% (median 16.9%), ranging from 19.7% for the higher-volume half to 14.6% for the lower-volume half. What Item 19 does not show is a projection, any figure for a new or unopened restaurant, results for the affiliate-operated restaurant, or net income after interest, taxes, depreciation, amortization and loan payments — all of which a buyer financing an $821,500 to $1,141,000 build-out would carry. It also does not show results for the 15 restaurants that opened during the year, or cost data for the 29 seasoned restaurants that did not report it.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Gross sales — Sales Group (91 franchised restaurants open the full period) 41.8% of units met or exceeded 38 of 91 restaurants were at or above the average. | Sales Group Average | $1,371,585 | 91 | Apr 1, 2025 – Mar 31, 2026 | FDD p.53 |
| Gross sales — Sales Group | Sales Group Median | $1,334,340 | 91 | Apr 1, 2025 – Mar 31, 2026 | FDD p.53 |
| Gross sales — highest single restaurant in the Sales Group | Sales Group High | $2,407,120 | 91 | Apr 1, 2025 – Mar 31, 2026 | FDD p.53 |
| Gross sales — lowest single restaurant in the Sales Group The same low figure is reprinted in the Bottom Half sub-table as '$752,5295', an apparent typographical error in the document. | Sales Group Low | $752,595 | 91 | Apr 1, 2025 – Mar 31, 2026 | FDD p.53 |
| Gross sales — top half of the Sales Group 46.7% of units met or exceeded Range for this sub-group: $1,335,874 to $2,407,120. | Top half of Sales Group (45 restaurants) Average | $1,609,507 | 45 | Apr 1, 2025 – Mar 31, 2026 | FDD p.53 |
| Gross sales — top half of the Sales Group | Top half of Sales Group (45 restaurants) Median | $1,591,336 | 45 | Apr 1, 2025 – Mar 31, 2026 | FDD p.53 |
| Gross sales — bottom half of the Sales Group 54.3% of units met or exceeded High for this sub-group: $1,334,340. | Bottom half of Sales Group (46 restaurants) Average | $1,138,836 | 46 | Apr 1, 2025 – Mar 31, 2026 | FDD p.53 |
| Gross sales — bottom half of the Sales Group | Bottom half of Sales Group (46 restaurants) Median | $1,169,816 | 46 | Apr 1, 2025 – Mar 31, 2026 | FDD p.53 |
| Gross sales — Cost and EBITDA Group (62 franchised restaurants that reported full cost data) 40.3% of units met or exceeded This group's sales average is higher than the 91-restaurant Sales Group average because it is a different, self-selected subset. Range: $766,189 to $2,359,270. | Cost and EBITDA Group Average | $1,407,585 | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Gross sales — Cost and EBITDA Group | Cost and EBITDA Group Median | $1,343,260 | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Cost of goods sold as a share of gross sales — Cost and EBITDA Group 45.2% of units met or exceeded Median 24.0%. Food and beverage sold in the restaurant. | Cost and EBITDA Group Average | 24.1% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Total labor as a share of gross sales — Cost and EBITDA Group 45.2% of units met or exceeded Median 28.5%. Where a Managing Owner runs the restaurant instead of a paid manager, the franchisor substituted an assumed $60,000 annual manager salary. | Cost and EBITDA Group Average | 29.1% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Total prime costs as a share of gross sales — Cost and EBITDA Group 46.8% of units met or exceeded Median 52.9%. Cost of goods sold plus labor. | Cost and EBITDA Group Average | 53.2% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Operating supplies as a share of gross sales — Cost and EBITDA Group 41.9% of units met or exceeded Median 3.6%. | Cost and EBITDA Group Average | 3.8% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Rent and common area maintenance as a share of gross sales — Cost and EBITDA Group 46.8% of units met or exceeded Median 6.1%. The top-half group averaged 5.2% and the bottom-half group 7.5%. | Cost and EBITDA Group Average | 6.2% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Utilities and other occupancy as a share of gross sales — Cost and EBITDA Group 46.8% of units met or exceeded Median 3.4%. | Cost and EBITDA Group Average | 3.4% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Repairs and maintenance as a share of gross sales — Cost and EBITDA Group 43.5% of units met or exceeded Median 1.5%. | Cost and EBITDA Group Average | 1.6% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Marketing costs as a share of gross sales — Cost and EBITDA Group 38.7% of units met or exceeded Median 2.6%. | Cost and EBITDA Group Average | 2.8% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Royalty fees as a share of gross sales — Cost and EBITDA Group 75.8% of units met or exceeded Median 5.0%. The contractual royalty is 5.0% of Gross Sales; the reported average is lower than 5.0%. | Cost and EBITDA Group Average | 4.8% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Other operating costs as a share of gross sales — Cost and EBITDA Group 45.2% of units met or exceeded Median 6.3%. Includes credit card fees and vehicle expenses. | Cost and EBITDA Group Average | 6.6% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| Gross sales — top half of the Cost and EBITDA Group 45.2% of units met or exceeded Median $1,649,678; range $1,352,378 to $2,359,270. | Top half of Cost and EBITDA Group (31 restaurants) Average | $1,653,744 | 31 | Apr 1, 2025 – Mar 31, 2026 | FDD p.55 |
| Gross sales — bottom half of the Cost and EBITDA Group 61.3% of units met or exceeded Median $1,206,213; range $766,189 to $1,348,294. | Bottom half of Cost and EBITDA Group (31 restaurants) Average | $1,161,425 | 31 | Apr 1, 2025 – Mar 31, 2026 | FDD p.56 |
Disclosed cost and profit figures
These figures are disclosed by the franchisor for the population stated in each row — often a subset (company-owned units, or franchisees who chose to report). They frequently exclude owner compensation, rent, debt service, taxes or royalties. They are not a prediction of your results.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| EBITDA as a share of gross sales — Cost and EBITDA Group Gross Sales less prime costs, operating supplies, rent and CAM, utilities and other occupancy, repairs and maintenance, marketing, royalty fees and other operating costs. It is stated before interest, taxes, depreciation, amortization, debt service and any owner compensation not already inside labor. | Cost and EBITDA Group Average | 17.6% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| EBITDA as a share of gross sales — Cost and EBITDA Group | Cost and EBITDA Group Median | 16.9% | 62 | Apr 1, 2025 – Mar 31, 2026 | FDD p.54 |
| EBITDA as a share of gross sales — top half of the Cost and EBITDA Group Median 18.6%. | Top half of Cost and EBITDA Group (31 restaurants) Average | 19.7% | 31 | Apr 1, 2025 – Mar 31, 2026 | FDD p.55 |
| EBITDA as a share of gross sales — bottom half of the Cost and EBITDA Group Median 14.6%. | Bottom half of Cost and EBITDA Group (31 restaurants) Average | 14.6% | 31 | Apr 1, 2025 – Mar 31, 2026 | FDD p.56 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 58 | 12 | 0 | 0 | 0 | 0 | 70 | 2 | 1 |
| 2024 | 70 | 17 | 0 | 1 | 0 | 0 | 86 | 7 | 1 |
| 2025 | 86 | 18 | 0 | 0 | 0 | 0 | 104 | 2 | 1 |
Disclosed 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill), Item 20, Tables 1–3 (PDF p. 58). Across the three years the system recorded 47 franchised openings, no terminations, no reacquisitions and no closures for other reasons; the only exit was a single non-renewal in South Carolina in 2024. Franchised outlets went from 58 at the start of 2023 to 104 at the end of 2025, a net gain of 46, while the one affiliate-owned or managed restaurant stayed constant. Eleven transfers to new owners occurred over the period, seven of them in 2024. Table No. 1 is headed 'YEARS 2022 to 2024' but its rows are labeled 2023, 2024 and 2025 and its figures reconcile to Table No. 3, which is headed 'FOR YEARS 2023 to 2025'; the heading on Table No. 1 appears to be a typographical error. A footnote states all counts are as of December 31 of each year and that 'company-owned' includes affiliate-owned or managed restaurants. Item 20 also notes that some current and former franchisees have signed provisions restricting what they may say about their experience as Eggs Up Grill franchisees.
Source data notes (7) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [C/minor] Table No. 1: Table No. 1 is headed 'SYSTEMWIDE RESTAURANTS SUMMARY FOR YEARS 2022 to 2024' (PDF p.58) but every row it contains is labelled 2023, 2024 and 2025, footnote 1 says the figures are as of December 31 of each year, and Tables No. 2 through 5 are headed 'FOR YEARS 2023 to 2025'. — Printed title: 'SYSTEMWIDE RESTAURANTS SUMMARY FOR YEARS 2022 to 20241'; printed rows: 'Franchised 2023 58 70 +12 / 2024 70 86 +16 / 2025 86 104 +18' and Table No. 3 'STATUS OF FRANCHISED RESTAURANTS FOR YEARS 2023 to 2025' whose Totals row gives the identical 58->70, 70->86, 86->104. The title is stale text from a prior year's FDD; use FY2023-FY2025. The TOTAL figures themselves are corroborated by Table 3, so nothing the site derives changes.
- [D/minor] Tables No. 1-5: Pass B observation that all five tables foot correctly; re-checked independently in Pass C. — Confirmed, no discrepancy. Table 3 state rows sum to the Totals row in every column and year (starts 58/70/86, opened 12/17/18, non-renewals 0/1/0, ends 70/86/104, PDF pp.59-60); Table 2 state rows sum to 2/7/2; Table 4 totals 1/1/1 with no acquisitions or sales; Table 5 columns sum to 27 signed-not-open and 21 projected franchised openings (Totals row on PDF p.61).
- [D/minor] Table No. 1 vs Table No. 3: Pass B observation that Table 1 and Table 3 agree and each year's start equals the prior year's end; re-checked in Pass C. — Confirmed, no discrepancy. Franchised 58->70 (2023), 70->86 (2024), 86->104 (2025) in both tables; 58+12=70, 70+17-1=86, 86+18=104. Total restaurants 59->71, 71->87, 87->105 including the single affiliate-owned unit from Table 4.
- [D/minor] Table No. 3 / Table No. 4: Pass B observation that the system shows essentially no attrition across FY2023-FY2025: zero terminations, zero franchisor reacquisitions, zero 'ceased operations - other', and one non-renewal (South Carolina, 2024). — Confirmed as printed, not an error. Table 3 columns are all zero except the single 2024 South Carolina non-renewal; Table 4 shows the one affiliate-owned restaurant neither acquired from nor sold to a franchisee in any year. Attrition of 1 unit on 70 start-of-year franchised units in 2024 (1.4%) is the entire three-year total.
- [D/minor] Table No. 5 2025: Pass B observation that Delaware and Pennsylvania appear in Table 5 (projected openings) but in neither Table 1 nor Table 3, and that Table 5 spans PDF pages 60 and 61 with the Totals row on page 61. — Confirmed, legitimate: Table 5 reports the signed-but-unopened pipeline as of December 31, 2025, so pipeline-only states with no operating restaurant correctly appear there and not in the operating tables (Delaware 1 signed / 1 projected; Pennsylvania 0 signed / 1 projected). Column totals 27 and 21 foot.
- [D/minor] Item 20 vs Item 19: Item 20 counts are as of December 31, 2025 (104 franchised, 105 total), while Item 19 uses a trailing-twelve-month Measurement Period ended March 31, 2026 and reports 107 Eggs Up Grill Restaurants in operation at that date. — Legitimate definitional difference, not a discrepancy: the two sections are measured three months apart (PDF p.51: 'As of the end of the Measurement Period (March 31, 2026), there were 107 Eggs Up Grill Restaurants in operation'). Unit counts, growth and attrition should be taken from the Item 20 December 31, 2025 tables; the 107 figure must not be mixed into them.
- [D/minor] Item 19 Sales Group: Pass B flagged that Item 19 states 105 restaurants were owned and operated by franchisees and that 15 restaurants opening after April 1, 2025 were excluded, which appears to leave 90 rather than the stated Sales Group of 91. — Reconciles on the printed numbers: 107 in operation = 1 affiliate-owned (excluded) + 1 franchisee-owned but affiliate-managed + 105 franchisee-owned and operated, so 106 are franchised. Item 19 excludes '15 franchised restaurants that did not open prior to April 1, 2025', and 106 - 15 = 91, the stated Sales Group. The 105 figure is the franchisee-operated subset, not the exclusion base; no other reading reconciles. Affects only the Item 19 average/median denominator, not any Item 20 metric.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 1 | 0 | 0 | 0 | 0 | 1 |
| 2024 | 1 | 0 | 0 | 0 | 0 | 1 |
| 2025 | 1 | 0 | 0 | 0 | 0 | 1 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill)
- Document
- FDD 2026, issued 2026-05-14
- Item
- Item 15
- Page
- PDF p. 42
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641739
An entity franchisee must name a Managing Owner holding at least 25% of its ownership and voting power, subject to franchisor approval, who is responsible for managing and supervising the restaurant. The franchisee may instead choose not to supervise full-time by appointing a Designated Manager who has completed the franchisor's initial training program. That manager must work full-time and may not hold any other role involving significant management responsibility or time commitment, so the arrangement is a trained full-time manager rather than a passive or semi-absentee model.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Manager-run permitted Disclosed
An entity franchisee must name a Managing Owner holding at least 25% of its ownership and voting power, subject to franchisor approval, who is responsible for managing and supervising the restaurant. The franchisee may instead choose not to supervise full-time by appointing a Designated Manager who has completed the franchisor's initial training program. That manager must work full-time and may not hold any other role involving significant management responsibility or time commitment, so the arrangement is a trained full-time manager rather than a passive or semi-absentee model. An entity franchisee must name a Managing Owner holding at least 25% of its ownership and voting power, subject to franchisor approval, who is responsible for managing and supervising the restaurant. The franchisee may instead choose not to supervise full-time by appointing a Designated Manager who has completed the franchisor's initial training program. That manager must work full-time and may not hold any other role involving significant management responsibility or time commitment, so the arrangement is a trained full-time manager rather than a passive or semi-absentee model. |
|---|---|
| Initial training | Initial training runs approximately 3 to 6 weeks at a franchisor office — currently Spartanburg, South Carolina — or another designated location, and may be delivered partly online. The published curriculum totals 21 classroom hours and 131 on-the-job hours across management and administration, daily restaurant operation, advertising and marketing, accounting and reporting, trademarks and confidential information, legal, and a final exam. On-site training at the franchisee's restaurant follows once construction is complete and a certificate of occupancy has been issued. The franchisee (or its Managing Owner), the Designated Manager if there is one, and any other personnel the franchisor specifies are Mandatory Trainees and must complete the program to the franchisor's satisfaction no later than 60 days before opening; failure to do so is a non-curable default. Training is provided at no additional fee for up to two Mandatory Trainees, but the franchisee pays trainer travel and a per diem of $500 per trainer per day, plus $5,000 for each additional attendee. The Managing Owner and Designated Manager must also pass a third-party ServSafe test. Disclosed
The Item 11 training table appears on PDF page 35. The franchisor recommends, but does not require, an additional two weeks shadowing an existing restaurant owner for a first restaurant. |
| Multi-unit / development options | The franchisor may — at its election — offer an Area Development Agreement under which the franchisee commits to develop a set number of restaurants on a schedule inside a defined Development Area. The development fee is $25,000 per restaurant committed; a typical deal covers 2 to 5 restaurants, so $50,000 to $125,000, paid in one lump sum and credited in $25,000 increments against the initial franchise fee for each Franchise Agreement signed. A typical schedule requires one restaurant to open every 9 to 12 months. Each restaurant is governed by its own then-current Franchise Agreement, which may differ from the form in effect when the development agreement was signed. The Area Development Agreement cannot be assigned and gives no options or rights of first refusal on further franchises. Disclosed
Item 12 (PDF page 37) adds that the development area is typically described as a radius or a city or county boundary, and that area protection ends when the Area Development Agreement expires or terminates. |
| Territory (Item 12) | The Franchise Agreement grants no exclusive or protected territory. The franchisee may operate only at the single approved location and faces possible competition from other franchisees, franchisor-owned outlets, other distribution channels and competing brands the franchisor controls. If no site is approved when the agreement is signed, the franchisee has six months to secure a site inside a defined Search Area and holds exclusive rights to that Search Area for those six months only; afterward multiple franchisees may search the same area. The franchisor reserves broad rights to open or license Eggs Up Grill restaurants anywhere, to run other restaurant brands, to sell through other channels including the internet, and to acquire or be acquired by a competing business, with no obligation to compensate the franchisee. Relocation is not permitted as of right. An Area Development Agreement also grants no exclusive territory, but while the developer complies with it and all its Franchise Agreements the franchisor will not open or license Eggs Up Grill restaurants inside the Development Area; that protection depends on meeting the Development Schedule, not on any sales or market-penetration target, and ends when the development agreement expires or is terminated. Disclosed
Item 12 also states the franchisee is under no obligation to achieve minimum sales from the restaurant. |
| Initial term | 10 years Disclosed
The term is generally 10 years but is amended once the premises lease is signed so that it corresponds to the lease expiration date, which can make the actual term shorter or longer than 10 years. |
| Renewal | A franchisee in substantial compliance may extend the term by 10 years. Conditions include at least six months' written notice, repairing, replacing and updating equipment and premises to then-current System Standards, no breach of any agreement with the franchisor or its affiliates, satisfaction of all monetary obligations, a continuing right to occupy the premises, payment of a renewal fee equal to 50% of the initial franchise fee, signing the then-current form of Franchise Agreement and a general release where lawful, and meeting current qualification and training requirements. The franchisor states the then-current agreement may contain materially different terms, including different fees. The Area Development Agreement has no renewal right. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: None disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | None disclosed Disclosed Item 3 states that no litigation is required to be disclosed. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy information is required to be disclosed. |
| Personal guaranty | Required Disclosed
If the franchisee is a legal entity, each of its owners must sign a guaranty assuming and discharging all of the franchisee's obligations under the Franchise Agreement and any Area Development Agreement. A married owner's spouse who is not an owner must sign for the limited purpose of assuming the confidentiality and non-competition obligations and acknowledging that the guaranty may reach marital assets; the cover pages carry a state-required 'Spousal Liability' risk warning on this point. |
| Non-compete | During the term, neither the franchisee, its owners, nor their immediate family members may have any involvement, direct or indirect, in a 'Competitive Business'. The definition is broad: any restaurant or food service business other than an Eggs Up Grill restaurant whose breakfast sales are at any time at least 10% of total gross receipts, or whose menu, concept, business model or method of operation is similar to the franchisor's, or that sells generally similar goods or services, or that franchises such businesses. Without consent the franchisee also may not operate any business marketed under a locally, regionally or nationally known or registered mark. After termination or expiry the franchisee may not be involved in a Competitive Business for 24 months within a 10-mile radius of its own restaurant or of any Eggs Up Grill restaurant open or under development at the time. Under an Area Development Agreement the post-term restriction is 24 months across the Development Area or within 30 miles of any Eggs Up Grill restaurant open or under development. Disclosed
The post-term covenant appears on PDF page 50. |
| Transfer restrictions | All transfers by the franchisee or its owners require franchisor approval, which the franchisor says it will not unreasonably withhold or delay. 'Transfer' is defined broadly to cover voluntary and involuntary sales, assignments and subdivisions, and the death of the franchisee or any owner is treated as a transfer requiring approval. Approval conditions include that the restaurant has opened; the buyer meets the franchisor's selection criteria and completes and pays for mandatory training; all monetary obligations are paid; neither party is in default under any agreement; a pre-sale inspection is passed and any deficiencies cured; the restaurant meets System Standards; the buyer signs the then-current forms of agreement, which may differ from the seller's; lease and licensing requirements are satisfied; and the transfer fee is paid. The transfer fee is 50% of the initial franchise fee for a transfer of the agreement or a majority ownership interest, or expense reimbursement for a minority interest. The franchisor holds a right of first refusal to buy the interest on the offered terms, exercisable within 30 days of notice. An Area Development Agreement may not be assigned at all. The franchisor may assign its own side of the agreement without restriction. Disclosed
|
| Termination / non-renewal | The franchisor may not terminate without cause; the franchisee may terminate only for an uncured material breach by the franchisor. Curable defaults carry short cure periods: 10 days for monetary defaults and lapsed insurance, 15 days for quality assurance audit failures, and 30 days for operational and other defaults (up to 90 days where a casualty event is the cause). A long list of defaults is non-curable, including failure to secure a site within six months, failure to open on time, failure of Mandatory Trainees to complete training, closing or failing to operate for more than three days, unapproved transfers, understating Gross Sales, felony conviction, repeated defaults even if cured, and receiving more than two notices of inappropriate or abusive conduct. Cross-default provisions let the franchisor terminate an Area Development Agreement for a failure under any Franchise Agreement. On termination by the franchisor with cause, or by the franchisee without cause, the franchisor may elect within 30 days to buy the restaurant's assets at liquidation value, and may claim lost revenue damages equal to the present value of royalties and marketing contributions that would have accrued to the scheduled expiry date. There is no minimum sales quota. Disclosed
|
| Supplier restrictions (Item 8) | The franchisor sets mandatory System Standards and may approve or designate every vendor of products and services used to build, operate and promote the restaurant. Franchisees must currently use designated vendors for site location brokerage, architecture and interior design, food procurement and distribution, soft drinks and coffee or tea, local store marketing, and point-of-sale hardware and software, in each case at prices negotiated system-wide; all other operating assets must come from approved suppliers. The franchisor estimates that 75% to 85% of both the initial investment and ongoing expenditures will be spent on restricted purchases. Neither the franchisor nor its affiliates is currently an approved or designated supplier, but the document reserves the right for them to become sole suppliers of any item. Proposing an unapproved product or supplier requires a written application and may carry a testing fee of up to $250, with no published approval criteria. The franchisor and affiliates receive rebates and other consideration from approved suppliers: currently 1% to 5% of purchase prices, $1 to $1,000 per unit purchased or leased, and $700 per restaurant open the full preceding year for menu development. In fiscal 2025 the franchisor received $322,154 from approved vendors on required franchisee purchases — 3.33% of its total revenue of $9,676,537 — of which $46,329 was designated for the Brand Promotion Fund, plus a further $246,455 in vendor contributions toward its annual owners' conference. There are no purchasing or distribution cooperatives. Disclosed
The vendor revenue figures appear on PDF page 23. The cover pages carry a state-required 'Supplier Control' risk warning. |
| Dispute resolution | The Franchise Agreement and the Area Development Agreement both require arbitration of all disputes at a location in or within 50 miles of the franchisor's principal place of business, currently Spartanburg, South Carolina, subject to state law. Any lawsuit must be brought in the state where the franchisor's headquarters are located, and South Carolina law governs. The cover pages carry a state-required 'Out-of-State Dispute Resolution' risk warning. The Michigan addendum voids provisions requiring arbitration outside Michigan, but the franchisor states in the same addendum that it believes the provision is preempted by federal law and intends to enforce its arbitration clause as written. A prevailing franchisor may recover its costs and attorneys' fees. Disclosed
|
- No exclusive or protected territory under the Franchise Agreement; the franchisor expressly reserves the right to compete and owes no compensation if it does.
- The initial term is amended on signing the premises lease to match the lease expiry, so the effective term may be shorter or longer than the stated 10 years.
- If the franchisor takes over interim management after a default, it charges 10% of Gross Sales plus its direct costs, for renewable 90-day periods up to one year in total.
- Early termination can trigger lost revenue damages equal to the present value of royalties and marketing contributions through the scheduled expiry date, plus a franchisor option to buy the restaurant's assets at liquidation value.
- The franchisor may increase the required marketing spend up to an aggregate 4% of Gross Sales and may raise the technology fee from $82 to as much as $200 per week.
- Item 20 discloses that some current and former franchisees have signed provisions restricting what they may say about their Eggs Up Grill experience, which limits reference checks.
- The franchisor and its parent and affiliates have never operated an Eggs Up Grill restaurant of the type being franchised; one restaurant is affiliate-owned or managed.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology. This brand's Item 19 also discloses some cost or profit data — see the Item 19 section, which takes precedence over any assumption here.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $1,138,836 | $1,371,585 | $1,577,323 |
| − Cost of goods / supplies assumption | $353,039 | $425,191 | $488,970 |
| − Payroll (excl. owner) assumption | $318,874 | $384,044 | $441,650 |
| − Occupancy assumption | $91,107 | $109,727 | $126,186 |
| − Other operating expenses assumption | $125,272 | $150,874 | $173,506 |
| − Royalty disclosed 5% of gross sales = $68,579 |
$56,942 | $68,579 | $78,866 |
| − Technology Fee disclosed $82/week × 52 = $4,264 |
$4,264 | $4,264 | $4,264 |
| − Brand Promotion Fund disclosed 1.6% of gross sales = $21,945 |
$18,221 | $21,945 | $25,237 |
| − Local Advertising disclosed 0.4% of gross sales = $5,486 |
$4,555 | $5,486 | $6,309 |
| − Annual Conference Fee disclosed $2,500 per year |
$2,500 | $2,500 | $2,500 |
| − Hosted Software / POS IT Help Desk Services disclosed $8,000 per year |
$8,000 | $8,000 | $8,000 |
| = Modeled operating result before the items below (EBITDA-style) | $156,061 | $190,974 | $221,834 |
| − Manager compensation assumption | $60,000 | $60,000 | $60,000 |
| = Modeled result after manager compensation | $96,061 | $130,974 | $161,834 |
| − Illustrative debt service assumption | $111,220 | $111,220 | $111,220 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$15,159 | $19,754 | $50,614 |
| Modeled operating margin | 13.7% | 13.9% | 14.1% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill) · issued 2026-05-14. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — EUG Franchising, LLC (Eggs Up Grill) Registry file 641739 · 246 pages Wisconsin registration effective 5/14/2026, status Registered. Issuance date on the cover is May 14, 2026; this is the most recent Eggs Up Grill FDD available from the reviewed registry. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-05-14 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-09-01): two independent AI reading passes plus tie-break re-inspection of every disagreement; 72 of 77 material fields confirmed (30 with the exact page citation re-confirmed), 1 corrected, 0 unresolved, 5 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (4)
- franchisor.business_since — Item 1 does not state when the first Eggs Up Grill restaurant opened. 2003 is the year the predecessor, Egg Ventures, Inc., was formed in South Carolina; the franchisor itself was formed in Delaware on February 21, 2018.
- franchisor.franchising_since — 2005 is when the predecessor began offering Eggs Up Grill franchises (March 2005 per Item 1). The current franchisor, EUG Franchising, LLC, began offering franchises in April 2018.
- item19.population_share_of_system — 86.7% is our arithmetic (91 Sales Group restaurants divided by the 105 restaurants Item 19 says franchisees owned and operated on March 31, 2026), not a figure the franchisor states.
- fees.transfer_fee and fees.renewal_fee — recorded as 50 with unit pct_other because Item 6 expresses both as 50% of the initial franchise fee rather than as a dollar amount.
Extraction notes (11)
- Item labels were lost in text extraction for this document, so the item files were split on canonical titles. As a result Item 9 sits inside item_08.txt, Item 11 inside item_10.txt, and the main Item 7 investment table sits at the end of item_06.txt; item_11.txt contains only a fragment of the table of contents. All figures here were read from the text at the cited PDF pages, verified with pipeline/page_of.py.
- Item 7's main table foots exactly: the 13 line items sum to $821,500 at the low end and $1,141,000 at the high end, matching the stated totals and the cover page.
- Item 20 Table No. 1 is headed 'SYSTEMWIDE RESTAURANTS SUMMARY FOR YEARS 2022 to 2024' but its rows are labeled 2023, 2024 and 2025 and reconcile exactly to Table No. 3, which is headed 'FOR YEARS 2023 to 2025'. The heading appears to be a typographical error; the row labels were used.
- Item 19's Bottom Half table prints the low as '$752,5295', an apparent typographical error for the $752,595 low stated for the full Sales Group. The Sales Group figure was used and the anomaly is recorded in the caveats.
- fees.cooperative is recorded as not_disclosed with a null value because Item 6 states the contribution amount is set by majority vote of the local cooperative's members and no participation is currently required, so no amount exists to record.
- No minimum liquid capital or net worth requirement appears anywhere in the cover pages, Item 1, Item 5, Item 7 or Item 15 of this document, so both fields are not_disclosed.
- The franchisor's fiscal year ends December 31; Item 21 refers to audited statements for the years ended December 31, 2025, 2024 and 2023, so Item 20's latest year is FY2025.
- Validator warning on fees.local_marketing (0.4%) is expected and correct, not a units error: Item 6 requires spending at least 0.4% of Gross Sales each week on local advertising, which is genuinely below the validator's 0.5% sanity threshold.
- Verification 2026-09-01: correct /franchisor/business_since 2003 → None
- Verification 2026-09-01: fix_page /item20/projected_openings_next_year 60 → 61
- Verification 2026-09-01: fix_page /item20/signed_not_open 60 → 61
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