Evaluating a Breakfast Cafe Franchise: What Aspiring Owners Should Know

Are you interested in owning one of the fastest-growing segments in the restaurant industry?

Breakfast cafe franchises are huge right now. Home breakfast eaters have been declining for years while patrons eating breakfast out has skyrocketed. If you’re looking to own a franchise this is a huge opportunity.

Here’s the problem…

Owning a bad franchise can wipe out your savings and leave you in hot water.

While there are tons of great breakfast franchises out there, some cafe concepts are better than others. I’m not talking about small differences either. Some franchises will set you up for success while others will cause you to struggle.

So how do you tell the difference? By knowing what to look for before buying a franchise.

In this post, you’ll learn:

• Why You Should Consider A Breakfast Franchise
• Things to consider when evaluating a breakfast franchise
• How Much Do Breakfast Franchises Cost
• 4 Red Flags When Evaluating A Franchise Opportunity

Why You Should Consider A Breakfast Franchise

Eating breakfast outside of the home is becoming more popular.

Reported restaurant visits during breakfast increased 13% over last year. And they haven’t stopped growing since.

There are a few reasons for this. Working from home has become more common as has flexible schedules. Not to mention everyone wants high-quality foods these days.

Let’s think about this…

A Breakfast cafe franchise is a perfect solution to all these breakfast consumer trends. Speed, healthy options, and atmosphere are what customers are looking for. And that’s exactly what they’ll get when visiting your breakfast cafe.

Not only that but Toastique franchise opportunities are built around healthy menus that’ll provide your customers with a fresh breakfast to kickstart their day. Health foods are HOT right now so if you’re able to serve food that fits into this category you’ll be set.

Things To Consider When Evaluating A Breakfast Franchise

If you jump into a franchise without doing your due diligence you’re asking for trouble.

Before you spend a dime on a franchise license there are certain things you should evaluate. Purchasing a franchise blindly will most likely lead to failure.

Here are the areas you should focus on when looking into any franchise opportunity.

Franchise Brand

There are thousands of breakfast franchise opportunities out there. So how do you know which brand is right for you?

It starts with knowing the brand’s reputation inside and out. You want a strong brand that will attract customers right out the gate. Because let’s face it when you first open your doors you’re going to have to fight hard to get people in your door.

Here are some questions to ask yourself:

Is the brand going to resonate with consumers? Or is it a tired brand that’s been done before. Sure there’s always a place for your classic diner. But brands like Toastique that focus on healthy menus are really taking off by jumping on the health food train.

Simple Operations

The restaurant industry is hard work.

But running a simplified restaurant is much easier than running your average breakfast, lunch, and dinner restaurant.

Keep your menu short and sweet. Seriously, your food costs will thank you. Not only that but it’ll be easier to train staff and you’ll serve customers faster.

Another thing to consider…

Smaller menus = smaller labor costs. When looking at Toastique franchise opportunities or any other concept for that matter, ask to see the operation floor plan and eatery layout.

Breakfast Hours

If you want a life outside of your business breakfast food is the way to go.

Most breakfast and brunch spots don’t stay open past 3PM. This isn’t an industry where you have to work late nights or weekends.

With that being said, this is a HUGE benefit. Not only will you attract better employees that don’t have to work late. You’ll also get to enjoy your evening which will help your mental health tremendously.

Compare that to a typical restaurant that’s open until late night. There’s really no comparison when it comes to quality of life.

How Much Do Breakfast Franchises Cost?

Investing in a franchise can be expensive. That’s why it’s important to know all the costs involved before buying.

According to the International Franchise Association, Franchise industry output is expected to reach over $936.4 billion in 2025. Whoa! As you can imagine the franchise industry is booming right now.

Startup Costs

The cost of purchasing a breakfast franchise will vary depending on the brand.

But for the most part, you can expect starting costs to include:

• Franchise Fee
• Build-out Costs
• Equipment Costs
• Working Capital

Franchise costs can range anywhere from $200,000 to upwards of $1 million. Brands that focus on premier locations will be at the higher-end of this price range.

Additional Fees

In addition to startup fees, you’ll be required to pay:

• Royalty Fee (typically 4-12% of gross sales)
• Marketing Fees (typically 1-3% of gross sales)

These fees go towards advertising the brand as a whole and support training programs. Along with ongoing support from the franchisor.

Every franchisor is different when it comes to their support…

Some are amazing and others are crap. Make sure you know exactly what you’re paying for. Don’t be afraid to ask plenty of questions.

4 Red Flags When Buying A Franchise

This isn’t meant to scare you, but not every franchise opportunity is what it seems.

While the franchises listed above are tried and true, some franchises are shady as all hell.

Misleading Profit Claims

Wow! I can expect to make $250k a year!

If someone tells you this during your buying process, be careful.

Legitimate franchises will provide you with an Item 19 in their disclosure document. Item 19 is where franchisors provide financial performance data of existing restaurants.

If they don’t disclose this information…

Move on immediately. You don’t want to waste your time let alone money on a franchise that can’t back up their claims.

Franchisee Turnover

Why did you sell your franchise?

This is a question you should ask any franchise for sale. If a franchise owner is quick to sell that franchise you open chances are something wasn’t right.

When talking to former franchise owners ask lots of questions about their experience with the franchisor as well as their own location.

Lack Of Training

The best franchise systems in the world have amazing training programs.

They don’t just stop there though. Once you’re up and running they continue to provide support. Whether it’s marketing tips, operational training, or business coaching. You should expect all of this and more when buying a franchise.

If they have sub-par training when you buy your franchise, walk away!

Territory

Believe it or not where your restaurant is located isn’t the only thing you should worry about with territory.

If your franchise agreement doesn’t state that the franchisor can’t open up shop down the street from you. Then they can!

You should buy a franchise that guarantees territory exclusivity. Doing this will protect you from yourself competing against yourself.

Final Thoughts On Evaluating Breakfast Cafe Franchises

Investing in a breakfast cafe franchise takes time, money, and effort. But if you do your research and find the right opportunity it can be a great business opportunity.

Breakfast isn’t going anywhere anytime soon. And if you’re able to find a breakfast franchise that checks all the boxes it can be the perfect fit for your lifestyle.

Here’s your checklist:

• Make sure you research the brand
• Know all startup costs and fees
• Talk to current franchisees
• Look for these red flags
• Find a brand that will help you succeed.