About EL&N Cafe' Franchise
EL&N Cafe is a specialty coffee and food franchise offering premium coffees, sandwiches, baguettes, salads, pastries, and other beverages from stylish retail cafe locations.
Backed by Racine Restaurants, the brand has been franchising since 2025 and brings a high end cafe experience to the growing specialty coffee market.
The franchise fee is $50,000.
EL&N Cafe' Franchise Cost & Fees
Minimum Investment
$883K
Average Investment
$1.4M
Maximum Investment
$1.9M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales | National brand fund |
| Total Investment Range | $883,000 – $1,867,000 | Includes build-out, inventory, working capital |
The investment range of $883K–$1.9M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (1% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee(1) | $50,000 | $50,000 |
| Initial Training Fee(1) | $10,000 | $10,000 |
| Real Property/Site Lease(2) | $60,000 | $90,000 |
| Design/Planning | $75,000 | $100,000 |
| Leasehold Improvements(3) | $450,000 | $1,200,000 |
| Furniture, Fixtures, and Equipment(4) | $150,000 | $250,000 |
| Smallwares and Opening Inventory(5) | $20,000 | $30,000 |
| Signage (6) | $5,000 | $10,000 |
| Soft Costs(7) | $3,000 | $5,000 |
| Insurance(8) | $3,000 | $5,000 |
| Computer System and Software(9) | $15,000 | $20,000 |
| Initial Training and Opening Assistance Costs and Reimbursements(10) | $6,000 | $10,000 |
| Security and Utility Deposits(11) | $20,000 | $60,000 |
| Business Licenses(12) | $1,000 | $2,000 |
| Additional Funds – 3 months(13) | $15,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 (Franchise Agreement); An amount equal to the sum of $10,000 multiplied by the number of remaining EL&N Cafe to be opened under your Development Agreement (Development Agreement) |
| Renewal Fee | $25,000 |
| Technology Fee | Currently $1,000 each Accounting Period for each EL&N Cafe, but in no case greater than $1,000 per Accounting Period during the initial term of the Franchise Agreement. Subject to increase annually by Franchisor in its sole discretion. |
| Audit Fee | Our reasonable expenses including wages, and any professional fees. |
| Extension Fee (Development Agreement) | $7,500 (per 75-day extension) |
| Convention Fees | Set before each convention or meeting based on anticipated actual costs |
| Maintenance and Alteration | As needed to your EL&N Cafe |
| Additional Persons at Initial Training | $500 per person per day plus an amount equal to personnel’s travel expenses and room, board and wages, but in no case more than $750 per person per day during the initial term of the Franchise Agreement. |
| Required Education/Training Programs | If we require your attendance at education programs/training sessions sponsored or held by us, we may charge you a fee for such attendance. |
| FF&E Upgrades | An amount determined by us or your third-party suppliers based on your satisfying our then current furniture, fixtures and equipment standards, but in no case more than $250,000 per EL&N Restaurant during the initial term of the Franchise Agreement. |
| Site Evaluation Reimbursement | Reimbursement of our costs, including travel and lodging expenses (if needed) and a per diem charge for salaries (currently $500 per person per day), but in no case more than $750 per person per day during the initial term of the Franchise Agreement. |
| Prospectus Review Fee | Reimbursement for our costs. |
| Indemnification Costs | Reimbursement of defense costs we incur and payment of judgments against us arising from your conduct. |
| Enforcement Costs | Will vary depending on circumstances. |
| Reimbursement of Insurance Costs | Premiums on required insurance we pay on your behalf |
| Interest and Late Payments | 1.5% of past-due amounts per calendar month or maximum rate allowed by law, whichever is less; also our collection costs. |
| Non-Compliance Fees | $1,000 to $4,000 per contractual deviation or default. |
| Liquidated Damages for Early Termination (Franchise Agreement) | An amount equal to the average of the Royalty Fees paid (or payable) over the past 12 months times the lesser of 24 or the number of full calendar months remaining in the term of the Franchise Agreement at the time of termination. |
| Liquidated Damages for Breach of Post-Termination Obligations (Franchise Agreement) | 200% of the Continuing Fees that you would otherwise have been obligated to us with respect to the operations of your EL&N Cafe if still a franchisee. |
| Liquidated Damages for Breach of Non-Competition Covenant | A monthly fee equal to 15% of the competing businesses’ revenues. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 1 to 2 weeks |
| Classroom Training | 35 |
| On-the-Job Training | 120 |
| Training Location | London, England, or affiliate-owned EL&N Cafes, online, and/or at your proposed EL&N Cafe |
| Additional Training | We may periodically make other mandatory or optional training available to your personnel as well as other programs, seminars and materials. We reserve the right to require you to pay us our then current additional training fee (currently an amount equal to $500 per person per day plus our costs, if any) if after opening you request additional training or the training of replacement Training Team members. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive, Protected |
| Exclusive Territory | No |
| Territory Size | approximately ¼ miles to 2 miles |
| Description | Your EL&N Cafe Territory will be a radius around your Approved Location of approximately ¼ miles to 2 miles (depending on the demographics of the area) measured by metes and bounds, but excluding any areas as to which we may have existing contractual commitments. Your EL&N Cafe Territory may be slightly larger or smaller than our normal size based on the population surrounding your EL&N Cafe. These excluded areas will be identified in your Franchise Agreement. You will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution controlled by the franchisor. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 2 conditional 5 year renewal terms |
| Renewal Fee | $25,000 |
| Renewal Conditions | You must not be in default, and must give notice, pay a renewal fee, upgrade your EL&N Cafe, and sign our then-current form of franchise agreement (which may contain materially different terms and conditions from the original agreement), sign a general release and attend training, if we require. |
| Transfer Fee | $20,000 (Franchise Agreement); An amount equal to the sum of $10,000 multiplied by the number of remaining EL&N Cafe to be opened under your Development Agreement (Development Agreement) |
| Transfer Conditions | Conditions include: you are not in default; new transferee and Principals, if applicable, qualify to own a new EL&N Cafe; asset transfer is complete disposition of franchise; EL&N Brand Standard Manual and copyrighted materials are returned; sign general release; transferee satisfactorily completes training and meets all of our other requirements; sign then-current form of franchise agreement; transfer fee is paid; payment terms are provided; profit and loss and cash flow projections are provided; and Principals sign guarantees. |
| Termination for Cause | We can terminate if you commit any one of several listed violations, including failure to pay fees, failure to cure defaults within specified periods (2 to 30 days depending on default), breach of non-compete, abandonment, multiple defaults, insolvency, or certain criminal acts or unethical conduct. Termination can also occur due to an adverse change of law materially affecting economic benefits. |
| Non-Compete Period | During the term of the franchise and for 2 years after termination/expiration |
| Non-Compete Details | During the term: no involvement in a competing business (defined as café-style food and beverage products) at your EL&N Cafe Address, within the EL&N Cafe Territory, within 10 miles of the perimeter of the EL&N Cafe Territory, within 10 miles of any other open and operating EL&N Cafe, or anywhere in the United States. Post-termination: no involvement in a competing business at the former EL&N Cafe Address, within the former EL&N Cafe Territory, within 10 miles of the perimeter of the former EL&N Cafe Territory, or within 10 miles of any other open and operating EL&N Cafe for two years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Unless you are an individual who will operate and manage your EL&N Cafe(s) personally, you must appoint a Controlling Principal who meets our eligibility standards and is approved by us to supervise and manage all aspects of your business. The Controlling Principal must complete initial training. We permit you to recruit and have an approved, full-time General Manager, but normally expect the Controlling Principal to manage all aspects of the business regardless of the number of EL&N Cafes. |
| Required Suppliers | You must use, offer and sell only Approved Items that meet or exceed the Brand Standards we specify, purchase or obtain them from an approved source that we designate (which may be us or our affiliates), and exclusively use, offer and sell only Approved Items that we designate. Likewise, you must purchase or obtain Approved Items only from approved suppliers we designate or approve from time to time. |
| Supply Restrictions | We must approve all leasehold improvements, furniture, fixtures, equipment, signage, trade dress, food and beverage products, supplies and menu items and any other products and services that are used, offered or sold in EL&N Cafes generally (“Approved Items”), and certain of these items may be manufactured using our or our affiliates’ proprietary recipes, Trade Secrets or other Confidential Information, and designated as proprietary by us as further described in Item 8. We reserve the right to develop and require the use, offer or sale of specific Approved Items in the future and may designate them as mandatory and/or proprietary to us. We reserve the right to require or permit you to purchase current or future Approved Items directly from us or our affiliates, current vendors or other approved vendors in the future. If we or our affiliates are the sole or an approved vendor for any such items, we reserve the right to set the prices for all such Approved Items as we deem appropriate from time to time. |
| Franchisor Revenue from Suppliers | We are in the process of contracting with approved suppliers for coffees and packaging to pay us a rebate of between 2% and 10% of the purchase price you pay to them for your purchase of these products. For the fiscal year ended December 31, 2024, we received $0 from purchases by our franchisees, which was 0% of our total revenues of $0. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not currently offer you any direct or indirect financing, nor do we receive any payments from any person offering financing to or arranging financing for a prospective EL&N Cafe franchisee. We do not guarantee your note, lease or any other financial obligation. |
EL&N Cafe' Franchise Earnings — Item 19
EL&N Cafe' does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
EL&N Cafe' does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
EL&N Cafe' Litigation & Risk Flags
Clean Litigation RecordEL&N Cafe' has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
EL&N Cafe' System Growth
Total Units
0
Franchised
0
Company-Owned
0
EL&N Cafe' currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 2 states: CA, NY
Franchisor Financials (Item 21)
0
Net Income
$-2,973.38
Total Assets
$8K
Audited by KNAV CPA LLP for year ending December 31st of each year.
EL&N Cafe' Franchise — FAQ
The total investment to open a EL&N Cafe' franchise ranges from $883,000 to $1,867,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
EL&N Cafe' charges a royalty fee of 6% of Gross Sales of gross sales, plus a 1% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the EL&N Cafe' Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from EL&N Cafe' to ensure you have the most up-to-date version.
EL&N Cafe' does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
EL&N Cafe' has been franchising since 2025. The FDD shows an investment range of $883,000-$1,867,000, a 6% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $883,000 to $1,867,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from EL&N Cafe' and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with EL&N Cafe' or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com