About Sunny Street Cafe Franchise
Sunny Street Cafe is a breakfast and lunch restaurant franchise known for its inviting atmosphere and menu of scratch made comfort food.
The brand specializes in morning and midday dining, serving classic American breakfast dishes, fresh baked goods, hearty sandwiches, and signature coffee drinks.
Sunny Street Cafe has been franchising since 2008, growing a loyal following in the competitive breakfast restaurant category.
Sunny Street Cafe Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5.25% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | A weekly advertising obligation of up to 4% of Gross Sales. Currently, your advertising obligation is 2.5% of Gross Sales. | National brand fund |
| Total Investment Range | $464,545 – $1,307,514 | Includes build-out, inventory, working capital |
The investment range of $465K–$1.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.25% of Gross Sales) and marketing fee (A weekly advertising obligation of up to 4% of Gross Sales. Currently, your advertising obligation is 2.5% of Gross Sales.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Rent - 3 Months (2) | $15,019 | $38,014 |
| Security Deposits | $6,000 | $13,000 |
| Architectural and Design Fees | $0 | $25,000 |
| Leasehold Improvements (3) | $145,000 | $643,000 |
| Furnishings, Fixtures, Signage & Equipment (4) | $218,026 | $450,000 |
| Opening Inventory (5) | $12,000 | $15,000 |
| Grand Opening Advertising and Promotions (6) | $5,000 | $8,000 |
| Training and On-Site Assistance Expenses (7) | $5,000 | $10,000 |
| Liability and Property Insurance | $4,500 | $6,500 |
| Catering Van (8) | $0 | $4,000 |
| Miscellaneous Costs (9) | $4,000 | $10,000 |
| Additional Funds - 3 months (10) | $15,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000, plus any out-of-pocket costs incurred by us (such as a broker fee or attorney fees) |
| Renewal Fee | $10,000, plus any out-of-pocket costs incurred by us (such attorney fees) |
| Audit Fee | Deficiency in royalty fees and advertising contributions, plus interest and costs |
| Interest | Interest on the amount owed from the date due until paid at the maximum rate permitted by applicable law, not to exceed 1.5% per month or portion of a month. |
| Late Fee | $100 |
| Additional Opening Assistance | You will be required to pay all travel, food and lodging costs incurred by our representatives |
| Operational or Marketing Assistance | You will be required to pay us for the cost of travel, food lodging and salary of our assigned personnel |
| Product Testing | Actual cost of testing |
| Collection Costs and Expenses | Our costs and expenses |
| Reimbursement of Insurance Costs | Cost of obtaining coverage |
| Offering Fee | $1,000 |
| Indemnification | The losses and expenses incurred by us |
| Costs and Attorneys’ Fees | Our costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | four weeks |
| Classroom Training | 6 |
| On-the-Job Training | 194 |
| Training Location | at one of the Sunny Street Café restaurants operated by our affiliates in metro areas of Dallas/Ft Worth, St. Louis, and Columbus. |
| Additional Training | We may also require you, your managers and such other employees as we designate to attend refresher courses, seminars and other training programs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | A description of the Development Territory and any Designated Trade Areas will be attached as an exhibit to the Development Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one successor term of 10 years |
| Renewal Fee | $10,000, plus any out-of-pocket costs incurred by us (such attorney fees) |
| Renewal Conditions | You must give timely notice; have complied with the original Franchise Agreement and the Sunny Street Café system; not be in default under any agreement with us or our affiliates; secure the right from your landlord to continue operating at the Franchised Location; renovate and modernize the Franchised Restaurant to reflect the then-current image of Sunny Street Café restaurants; sign general release; comply with training requirements; and pay a renewal fee. You also must sign our then-current form of franchise agreement, which may contain materially different terms and conditions than your original Franchise Agreement. |
| Transfer Fee | $10,000, plus any out-of-pocket costs incurred by us (such as a broker fee or attorney fees) |
| Transfer Conditions | obligations assumed by transferee; payment of monies owed to us; no default beyond applicable cure period; transferee completes training; qualified transferee; transferee executes standard franchise agreement; signed release; and payment of transfer fee. |
| Termination for Cause | We may terminate upon default. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No activity as described in paragraph q. above for 2 years. Ownership restriction applies to restaurant businesses at the Restaurant Location, or located within a 2 mile radius of the Franchised Restaurant or any then-existing Sunny Street Café restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | If you do not personally participate, you must designate a qualified individual to serve as manager of your Franchised Restaurant. All managers, and you if you participate personally, must complete to our satisfaction the Initial Training Program and any refresher training as further described in Item 11. |
| Required Suppliers | You are required to purchase and serve certain brands of beverages, condiments and other food items produced by specified manufacturers. Our required distributor is Gordon Food Service and its affiliated entities. |
| Supply Restrictions | Where we have issued standards and specifications, you must use only ingredients, food products, spices, seasonings, mixes, beverages, materials, supplies used in the preparation of food products, furniture, fixtures, equipment, smallwares, forms, paper and plastic products and packaging and other materials that meet those standards and specifications. |
| Franchisor Revenue from Suppliers | In 2022, our rebate revenue was $375,196, which comprised 21.7% of our total revenue of $1,731,375. |
Sunny Street Cafe Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Sunny Street Cafe 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.
Sunny Street Cafe System Growth
Sunny Street Cafe currently operates 12 franchised locations and 10 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 3 | 22 |
| 2021 | 0 | 0 | 22 |
| 2022 | 0 | 0 | 22 |
Transfers: 0 | Closures: 3
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Perks Pusateri for year ending December 31.
Sunny Street Cafe Franchise — FAQ
Similar Food & Beverage Franchises
Interested in Sunny Street Cafe?
Get free info on this franchise. We will send you a detailed FDD report by email.