Eggsmart franchise costs and fees

What the figures include

Eggsmart’s development budget is a line-by-line estimate of building a new restaurant: the franchise fee, the training fee, architectural drawings and permits, leasehold improvements, signage and interior art, equipment, smallwares and furniture, and a grand opening package. The page adds that the cost of construction is site specific and may vary. The budget is the cost of opening a new restaurant, not the price of an existing one.

What the figures leave out

Eggsmart says development costs “do not include working capital, opening inventory, rent and utility deposits and legal expenses”, and that all costs are subject to sales tax where applicable. Working capital is therefore on top of the $820,000.00 budget. Eggsmart’s FAQ states the total as “820,000.00” without a dollar sign; the opportunities page shows it as $820,000.00.

Royalty and advertising

Eggsmart publishes a royalty of 5% of all sales per week once the location is running, and an advertising fee it describes as “as little as 3% per week”. The phrase “as little as” means the page does not fix the rate, so ask what the disclosure document says. Ontario’s Arthur Wishart Act (Franchise Disclosure), 2000 says the prospective franchisee must receive that document not less than 14 days before the earlier of signing the franchise agreement or any other agreement relating to the franchise and paying the franchisor or its associate any consideration relating to the franchise, subject to the exceptions in s.5(1)–(1.2) and the exemptions in s.5(7). See what disclosure a resale buyer gets.

Financing an Eggsmart purchase

Eggsmart’s steps to ownership page says an offer to franchise is conditional on franchisee approval, bank financing and securing a lease, with a refundable deposit of $5,000 submitted with it. The deposit becomes non-refundable once the conditions are removed. For general routes to financing, see can a franchise purchase be financed?

What Eggsmart listings on Deavo ask

Published initial fees of other brands on Deavo

Each figure is the franchisor’s own published initial fee for Canada, read on the date shown in its row. A fee is one part of the cost of a franchise, not the total.

About the Canadian Franchise Association listing

CFA’s directory has an Eggsmart listing. Its investment figure differs from the development cost on Eggsmart’s own opportunities page, so this page quotes Eggsmart and uses CFA only to show that the listing exists. The directory shows no membership year, so none is quoted.