Elmers Breakfast Lunch Dinner Restaurant, Egg N' Joe Restaurant, or Elmer's Kitchen Breakfast Brunch Mimosas Restaurant Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $1,146,750 to $3,881,500
• Franchise Fee: $40,000
• Royalty: 4% of Gross Sales, with a 5% figure also referenced in the fee table language; the disclosure does not clearly establish when the higher rate applies
• Marketing / Ad Fee: 1% Brand Promotion Fund contribution, with option to increase to 2%, plus up to 1% local marketing, subject to a 3% aggregate marketing cap
• Key additional recurring fees: technology fee estimated at $250 per month; possible website maintenance fee estimated at $20 per month if implemented
• Number of locations: 20 total Elmer's Restaurants at year-end 2024, including 7 franchised and 13 company-owned or managed
• Best Fit: owner-operator with a general manager, or an owner providing active oversight rather than passive absentee ownership

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• The estimated initial investment ranges from $1,146,750 to $3,881,500, which places this in a high-cost to very high-cost startup range.
• The initial franchise fee is $40,000.
• The disclosure also lists additional funds of $90,000 to $200,000, which suggests a meaningful working-capital requirement on top of buildout and opening costs.
• This appears to be a capital-intensive restaurant opening, and the ownership model also implies ongoing management infrastructure rather than a lightly staffed format.

For a prospective franchisee, the main cost drivers are likely the restaurant buildout, equipment, opening setup, and working capital, although the disclosure excerpt provided here does not fully break out each line item in the initial investment table.

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• Royalty: 4% of Gross Sales, paid weekly by ACH; a 5% figure also appears in the fee data, but the disclosure does not clearly establish the exact circumstances for that rate
• Brand Promotion Fund: 1% of Gross Sales, with the option to increase to 2%
• Local Marketing Expenditure: up to 1% of Gross Sales monthly; if the required amount is not spent locally, the difference is contributed to the Brand Promotion Fund
• Marketing cap: aggregate required marketing expenditures capped at 3% of Gross Sales
• Technology fee: estimated at $250 per month
• Website maintenance fee: currently not charged, but estimated at $20 per month if implemented
• Late fees: interest up to 18% annually plus $100 service fee per late payment and $100 for returned checks or declined ACH requests
• Other possible fees: transfer fees, renewal fee, audit costs, interim operations fee, additional training, additional assistance, insurance reimbursement, non-compliance charges, and lost revenue damages in certain termination scenarios

Overall, the recurring fee load includes a percentage-of-sales royalty, required marketing spend, and monthly technology costs. That structure is not unusual for a restaurant franchise, but because the fees are tied to Gross Sales, they apply regardless of store-level profitability.

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The disclosure includes Item 19 revenue data, but it is revenue only, not profit. It does not show store-level expenses, labor, occupancy, food costs, debt service, or net income. The disclosure also does not clearly state here whether the figures are audited.

Item 19 disclosed revenue figures

Using the unit figures provided:

2023 Gross Sales for 5 named affiliate-owned units

• Average: $1,938,701
• Median: $2,147,075
• Range: $1,365,245 to $2,386,626
• Lower quartile boundary: $1,365,245
• Upper quartile boundary: $2,276,963

These five units were:

• Egg N' Joe #1: $1,365,245
• Egg N' Joe #2: $2,147,075
• Egg N' Joe #3: $1,517,598
• Elmer's Kitchen #1: $2,276,963
• Elmer's Kitchen #2: $2,386,626

Additional Elmer's Restaurant revenue data

The disclosure also provides 2023 and 2024 Gross Sales for Elmer's Restaurants that had been open at least one full year.

2024 Franchised Elmer's Restaurants (7 units)

• Average: $3,219,767
• Median: $2,622,934
• Range: $2,120,390 to $6,659,722

Unit-level 2024 Gross Sales:

• A: $6,659,722
• B: $3,483,175
• C: $2,798,793
• D: $2,622,934
• E: $2,556,696
• F: $2,296,659
• G: $2,120,390

2024 Elmer's Restaurants overall sample (20 units, including 7 franchised and 13 company-owned or managed)

• Average: $3,039,836
• Median: $2,857,983
• Range: $2,113,354 to $6,659,722

What the spread suggests

• Revenue dispersion is material. In the 2024 franchised Elmer's sample, the highest unit at $6.66 million is more than three times the lowest at $2.12 million.
• The five named affiliate-owned units from Egg N' Joe and Elmer's Kitchen show lower revenue levels than the 2024 franchised Elmer's sample.
• Several franchised Elmer's units posted year-over-year declines from 2023 to 2024, while others increased, which points to location-level variability rather than a uniform trend.
• The disclosure excludes at least some units that were not open for a full year and one franchised Elmer's restaurant that ceased operations during the 2024 fiscal year, so the reported figures do not represent every unit in operation during the period.

Bottom line: the disclosure shows that some units generate multi-million-dollar annual revenue, but the range is wide and revenue should not be treated as earnings.

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• Model: B2C restaurant business
• Revenue pattern: recurring daily sales from restaurant operations rather than one-time project revenue
• Operating characteristics: full-service restaurant format, significant equipment and buildout, required dedicated manager, weekly royalty remittance by ACH, and ongoing local plus brand-level marketing obligations
• Owner role: the disclosure points toward manager-led operations with active owner oversight, not a passive investment structure

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Advantages

• Item 19 includes actual Gross Sales figures across multiple units and formats, giving a concrete revenue range to review.
• The system includes multiple operating brands under the same franchisor umbrella: Elmer's, Elmer's Kitchen, and Egg N' Joe.
• Required marketing spend is subject to a stated 3% aggregate cap, which limits how high combined required marketing contributions can go.
• The franchise term is 15 years, which may matter for operators evaluating the time horizon for a large upfront investment.

Considerations

• The initial investment of $1.15 million to $3.88 million is substantial and raises the capital at risk.
• Royalty and marketing obligations are based on Gross Sales, so they continue even if restaurant-level margins are pressured.
• The revenue range across disclosed units is wide, indicating meaningful location and operating variability.
• The territory is non-exclusive, which limits territorial protection.
• The system's franchised Elmer's count fell from 13 to 7 in 2024, while company-owned or managed units increased from 8 to 13.

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• This may fit an operator comfortable with a capital-intensive restaurant business, a dedicated general manager structure, and active oversight of staffing, operations, and compliance.
• It is more aligned with someone prepared for weekly fee remittance, ongoing marketing obligations, and a long-term operating commitment.
• It likely does not fit someone seeking a low-cost startup, a simple service business, or a passive semi-absentee model.

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• The franchisor has the right to terminate without cause, according to the disclosure.
• If the agreement is terminated or the franchisee terminates without cause, lost revenue damages may apply based on the present value of future royalty and Brand Promotion Fund payments.
• One franchised Elmer's restaurant that ceased operations during the 2024 fiscal year was excluded from the 2024 Item 19 sample.
• Interim operations provisions allow the franchisor to operate the restaurant or appoint a third party in certain circumstances, with related fees and cost reimbursement.
• Late payment exposure can include both interest and fixed service charges, which can add up if reporting or payment discipline slips.

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This is a high-investment, operationally intensive restaurant franchise with disclosed unit revenues that span from roughly $1.3 million to $6.7 million, depending on brand format and sample. The main tradeoff is clear: some units show substantial top-line sales, but the model requires significant upfront capital, active management, and acceptance of revenue variability, non-exclusive territory, and contract terms that can become costly if the relationship ends early.

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