About Crack'd Kitchen Franchise
Crack'd Kitchen is a breakfast and brunch restaurant franchise under parent company CRACK'D, LLC, offering opportunities since 2021.
Each location serves a creative menu of egg based dishes, pancakes, French toast, sandwiches, and specialty beverages in a modern, inviting atmosphere.
The brand puts a fresh spin on classic breakfast fare with bold flavors and quality ingredients.
Crack'd Kitchen Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of Gross Revenue (Brand Development Fund Contribution) | National brand fund |
| Total Investment Range | $536,500 – $1,018,633 | Includes build-out, inventory, working capital |
The investment range of $537K–$1.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenue) and marketing fee (Up to 1% of Gross Revenue (Brand Development Fund Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Initial Advertising and Promotion | $15,000 | $15,000 |
| Lease Security Deposit | $8,500 | $20,833 |
| Utility Deposits | $1,200 | $3,500 |
| Licenses and Permits | $1,500 | $9,000 |
| Leasehold Improvements | $247,000 | $550,000 |
| Signage | $7,800 | $19,400 |
| Fixtures, Furniture, and Equipment | $145,000 | $238,000 |
| POS/Back Office System | $5,000 | $10,000 |
| Computer Hardware and Software | $4,500 | $8,500 |
| Digital Menus | $9,700 | $11,000 |
| Smallwares, Uniforms, and Initial Supplies | $17,000 | $30,000 |
| Professional Services | $5,500 | $6,500 |
| Initial Inventory | $9,500 | $15,000 |
| Insurance | $800 | $1,400 |
| Training Expenses | $3,500 | $5,500 |
| Additional Funds | $30,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Varies: $1,500 for individual to business entity transfer; $2,500 plus expenses for non-controlling ownership interest transfer; 50% of then-current initial franchise fee for business or controlling interest transfer. |
| Renewal Fee | 50% of the then-current initial franchise fee |
| Technology Fee | Greater of $250 per month or $3,000 per calendar year, which limitation may increase 10% per calendar year |
| Audit Fee | Cost of audit (if necessary due to reporting failure or underreporting Gross Revenues by 2% or more) |
| Additional Restaurant Opening Assistance | $500 per trainer per day, plus travel and lodging expenses |
| Additional Training; Remedial Training | Currently, $300 per day per trainer, plus travel and lodging expenses (rate subject to change) |
| Mandatory Ongoing Training and Seminars | Currently, $300 per day, plus travel and lodging expenses (rate subject to change) |
| Administrative Fee | $250 per enforcement effort, and $250 per week for each week issue remains unresolved |
| Quality Assurance Audit Fee | Actual cost, estimated to be $300 per quarter |
| Mystery shop program | Actual cost, estimated to be less than $150 per month |
| Nonsufficient Funds Fee | Currently $100 per occurrence (may increase up to 10% per year) |
| Interest/Late Fee | 18% per year or the maximum lawful rate, whichever is less |
| Indemnification | An amount equal to the value of all losses and expenses that we incur |
| Supplier Inspection and Testing | Reimbursement of our actual costs |
| Intranet/Extranet System Fee | An amount we specify, not to exceed $1,000 per year |
| Insurance Premium Reimbursement | Reimbursement of insurance premium plus a reasonable administrative fee, not to exceed $500 |
| Relocation fee | 50% of the then-current initial franchise fee |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 177 hours |
| Classroom Training | 47 hours |
| On-the-Job Training | 130 hours |
| Training Location | Andover, Massachusetts |
| Additional Training | Franchisor may require additional courses, seminars, and training programs for Operations Managers, Restaurant Managers, and other designated employees, for which a reasonable tuition may be charged. Franchisees are responsible for all associated costs including salary, travel, lodging, and dining expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Site Selection Area agreed upon in franchise agreement |
| Description | Franchisees do not receive an exclusive territory. They may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by the franchisor. The franchisor reserves the right to operate or grant rights to others to operate CRACK’D KITCHEN & COFFEE Restaurants regardless of proximity, develop other competing concepts, and distribute products through alternative channels (e.g., grocery stores, mail order, Internet). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years (or 11 years from effective date, whichever is earlier) |
| Renewal Term | Two additional 5-year terms |
| Renewal Fee | 50% of the then-current initial franchise fee |
| Renewal Conditions | To renew, franchisees must provide notice (12-24 months prior), be in good standing, satisfy all monetary obligations, have the right to possess the premises (or an approved alternate site), renovate the Restaurant to current image standards, comply with current training and qualification requirements, pay the renewal fee, and sign the then-current franchise agreement and a general release. |
| Transfer Fee | Varies: $1,500 for individual to business entity transfer; $2,500 plus expenses for non-controlling ownership interest transfer; 50% of then-current initial franchise fee for business or controlling interest transfer. |
| Transfer Conditions | Transfers require franchisor's prior written consent, which will not be unreasonably withheld. Conditions include: franchisee compliance with all agreements, transferee meeting franchisor's standards (educational, managerial, business, moral character, credit rating, aptitude, sufficient equity capital), all monetary obligations satisfied, refurbishment of the Restaurant, signing a general release and covenant not to sue, payment of transfer fee, transferee signing a new franchise agreement (current form, remaining term or longer with extended term fee), and if a business entity, Owners signing a Guaranty and Personal Undertaking. Franchisor has a right of first refusal. |
| Termination for Cause | Franchisor can terminate for cause, or for cause termination of any other agreement. Curable defaults (10 days to cure): non-payment of fees, violation of Marks/Copyrighted Works use/protection, product preparation/service/quality violations, failure to obtain/maintain insurance. Curable defaults (30 days to cure): non-compliance with laws, other defaults. Non-curable defaults (immediate termination): bankruptcy/insolvency, conviction of certain crimes, knowingly maintaining false books/records, understating amounts owed by 2% or more twice in 2 years, failure to complete training, failure to open by required date, abandonment, loss of license/right to occupy, violation of confidentiality/non-compete, failure to comply with Crisis Management Events, offering unauthorized products/services, purchasing from unapproved suppliers, repeated curable defaults, imminent threat to health/safety, attempted unauthorized transfer, material misrepresentation in application, failure to pass two quality inspections in 12 months. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, neither franchisee nor Owners may have interest in or association with a coffee bar or restaurant focused on breakfast and lunch service/menu items within the U.S., its territories/commonwealths, or any country/province/state/geographic area where franchisor/affiliates use/registered Marks. No diversion of customers or solicitation of franchisor/affiliate management employees. After termination/expiration/transfer, for two years, neither franchisee nor Owners may have interest in any competitive business at the former Restaurant location, within a 25-mile radius of the former Restaurant, or within a 25-mile radius of any other CRACK’D KITCHEN & COFFEE Restaurant in existence or under development. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Operations Manager must supervise the restaurant on-premises and, if the franchisee is a business entity, must hold at least a 10% ownership interest. Unless a Restaurant Manager is appointed, the Operations Manager must devote full-time efforts to supervising operations and cannot engage in other businesses. A Restaurant Manager may be designated with franchisor consent, but the Operations Manager remains ultimately responsible. All Owners and the Operations Manager must sign a personal guaranty and agree to be personally bound to the franchise agreement. |
| Required Suppliers | Franchisor may require franchisees to purchase all products and services necessary to construct and operate the franchised business from approved or designated suppliers. This includes fixtures, furniture, equipment, signs, decor, audio/visual systems, food products and ingredients, all fountain and bottled beverages, uniforms, merchandise for retail sale, advertising and promotional materials, gift certificates and stored value cards, stationery, business cards, contracts, forms, bags, packaging, supplies bearing Marks, insurance coverage, architectural services, and accounting and bookkeeping services. Franchisees may also be required to engage a designated tenant representative for site selection and must purchase POS computer hardware and software from approved suppliers. If a designated music provider is identified, music must be acquired from them. |
| Supply Restrictions | Franchisees must request approval to purchase from unapproved sources for items with designated suppliers. Approval may require inspection of supplier facilities, submission of information, specifications, and samples for testing (with a fee for actual costs). Franchisor will notify within 30 days. If no approved supplier is identified, franchisees may choose suppliers, but items must meet franchisor specifications, including brand requirements. |
| Franchisor Revenue from Suppliers | Franchisor and its affiliates may derive revenue from franchisee purchases and leases. As of December 31, 2021, neither franchisor nor its affiliates derived any revenue from franchisee purchases or leases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing, nor does it guarantee franchisee notes, leases, or other obligations. |
Crack'd Kitchen Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Crack'd Kitchen 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.
Crack'd Kitchen System Growth
Crack'd Kitchen currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 0 | 1 |
| 2020 | 0 | 0 | 1 |
| 2021 | 1 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 6 states: CA, IL, MD, NY, ND, VA
Franchisor Financials (Item 21)
Audited by AGLLP-CPA for year ending December 26.
Crack'd Kitchen Franchise — FAQ
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