This is the strongest defensible pre-tax, pre-interest, pre-debt-principal and pre-capital-expenditure owner-earnings proxy available from the 2026 Eggs Up Grill Franchise Disclosure Document. It converts official Item 19 average Gross Sales and EBITDA margins for the bottom half, full Cost and EBITDA Group, and top half into annual EBITDA dollars. The central calculation is approximately $248,000 per restaurant.
The dollar figures above are an independent conversion of identified FDD facts, not a separate Item 19 financial performance representation made by EUG Franchising, LLC. The Conservative, Base and Upside labels are editorial scenario labels applied to disclosed cohort averages; they are not probabilities. Actual results can differ materially because of location, restaurant age, Gross Sales, food cost, labor, occupancy, financing, owner involvement and execution.
The 2026 FDD reports average and median EBITDA percentages for 62 mature franchised restaurants, plus separate top-half and bottom-half cohorts. EBITDA is a business-performance measure, not an owner's salary or after-tax take-home pay.
The current same-brand FDD defines the population, period, Gross Sales, expense categories, EBITDA formula and manager-pay normalization. The main limitation is that only 62 of the 91 mature restaurants supplied complete cost data.
- Legal franchisor
- EUG Franchising, LLC, a Delaware limited liability company.
- Disclosure document
- 2026 Franchise Disclosure Document, issued May 14, 2026. No separate disclosure-document amendment superseding Item 19 was identified in the reviewed document.
- Applicable population
- Franchised Eggs Up Grill Restaurants operating under the single-restaurant Franchise Agreement for the complete trailing-twelve-month period; 91 restaurants in the Sales Group and 62 restaurants in the Cost and EBITDA Group.
- Evidence mode
- Mode A - Official Earnings Disclosure, with derived dollar calculations from compatible Item 19 averages.
- External benchmarks
- No external restaurant margin was used to set the earnings range. U.S. Bureau of Labor Statistics data are used only as a reasonableness check on manager compensation.
- Public-source status
- No matching public 2026 FDD was verified on a franchise-controlled domain; FDD references are therefore cited in plain text by Item and page.
- Date checked
- July 21, 2026.
What does the 2026 Eggs Up Grill FDD actually measure?
Officially, Item 19 measures Gross Sales, operating-cost percentages and EBITDA for mature franchised restaurants. It does not report owner salary, distributions, personal income taxes, debt payments or after-tax take-home pay. The relevant measurement period is April 1, 2025 through March 31, 2026.
The Sales Group contains 91 restaurants that operated for the full measurement period. The FDD excluded one affiliate-owned restaurant and 15 franchised restaurants that had not been open for the entire period. The Cost and EBITDA Group then excludes another 29 restaurants that did not provide complete cost and EBITDA data, leaving 62 reporting franchised restaurants.
- Gross Sales
- Revenue from operating the restaurant under the Franchise Agreement definition. It is revenue, not owner earnings.
- EBITDA
- Gross Sales less the Item 19 operating-cost categories. Interest, taxes, depreciation and amortization are not deducted.
- Manager-run owner-earnings proxy
- Derived EBITDA dollars after normalized restaurant-manager compensation, but before financing, taxes and capital expenditure.
- Owner-operator benefit
- Derived EBITDA plus the FDD's $60,000 manager-labor value when the owner personally replaces the Designated Manager.
The FDD's $1,407,585 Cost and EBITDA Group average is Gross Sales. The earnings measure is the 17.6% EBITDA margin, which converts to approximately $247,735 per restaurant. Calling the $1.408 million revenue figure an owner's income would overstate earnings by more than five times.
FDD basis: 2026 Eggs Up Grill FDD, Item 19, pp. 46-51; Item 20, pp. 52-55.
How is the $170,000-$326,000 earnings range calculated?
The range uses compatible average Gross Sales and weighted-average EBITDA margins from three Item 19 cohorts. The Conservative scenario uses the bottom-half Cost and EBITDA Group, the Base scenario uses all 62 restaurants, and the Upside scenario uses the top-half group. These labels organize the disclosed data; they do not mean that any outcome is guaranteed or statistically most likely.
| Analytical scenario | FDD average Gross Sales | FDD average EBITDA margin | Derived annual EBITDA |
|---|---|---|---|
| Conservative - bottom-half cohort | $1,161,425 | 14.6% | $169,568 |
| Base - all 62 reporting restaurants | $1,407,585 | 17.6% | $247,735 |
| Upside - top-half cohort | $1,653,744 | 19.7% | $325,788 |
Item 19 separately reports median Gross Sales of $1,343,260 and a median EBITDA margin of 16.9% for the Cost and EBITDA Group. The FDD explains that category medians are calculated independently. Multiplying those two medians would not establish the median restaurant's EBITDA, so this article does not present that product as an official or derived median earnings result.
How does active owner involvement change the result?
An owner who personally replaces the restaurant's full-time Designated Manager may capture roughly $60,000 of additional annual labor value. Item 19 normalizes Total Labor by inserting a $60,000 annual manager salary for Managing Owner restaurants that did not pay manager wages. That makes the disclosed EBITDA more comparable across owner-operated and manager-run restaurants.
FDD-derived EBITDA after normalized manager compensation. This is the closer proxy for pre-tax owner earnings when a paid Designated Manager runs daily operations.
Manager-run EBITDA plus the FDD's $60,000 manager-labor value. Part of this amount compensates the owner for full-time work; it is not passive business profit.
| Scenario | Manager-run EBITDA proxy | FDD manager-labor value | Estimated owner-operator benefit |
|---|---|---|---|
| Conservative | $169,568 | +$60,000 | $229,568 |
| Base | $247,735 | +$60,000 | $307,735 |
| Upside | $325,788 | +$60,000 | $385,788 |
The Franchise Agreement structure allows a Managing Owner to supervise the restaurant or to appoint a full-time trained Designated Manager. The Managing Owner remains responsible for management, direction and control. A manager-run structure therefore reduces daily labor performed by the owner, but it does not create a fully passive ownership model.
The FDD's $60,000 assumption is system-specific. For context only, the U.S. Bureau of Labor Statistics profile for Food Service Managers reports a $65,310 national median annual wage for May 2024, while local restaurant-manager compensation can vary materially by market and experience.
FDD basis: 2026 Eggs Up Grill FDD, Item 15, pp. 36-37; Item 19, pp. 50-51.
Which operating costs are already reflected in EBITDA?
The 17.6% average EBITDA margin is after the operating-cost categories listed in Item 19, including Total Prime Costs, occupancy, marketing and royalty fees. It is not appropriate to subtract the 5% royalty or reported marketing costs again from the derived EBITDA.
Are all recurring Item 6 fees clearly inside the Item 19 expense data?
The percentage-based royalty and reported marketing costs are clearly reflected, but the treatment of every fixed recurring charge is uncertain. Item 6 states a 5% Royalty, a 1.6% initial Brand Promotion Fund contribution, at least 0.4% local advertising subject to the Marketing Cap, an $82 weekly Technology Fee and a $2,500 Annual Conference Fee.
The Technology Fee and Annual Conference Fee equal $6,764 annually at the stated rates. Item 19's definition of Other Operating Costs is nonexclusive, but it does not expressly confirm whether those two charges are included for every reporting restaurant. Subtracting them automatically could double count costs; ignoring them without verification could overstate cash available. A buyer should obtain the Item 19 substantiation and restaurant-level profit-and-loss statements to resolve the classification.
FDD basis: 2026 Eggs Up Grill FDD, Item 6, pp. 6-11; Item 19, pp. 48-51.
Why can actual owner earnings fall outside this range?
The $170,000-$326,000 range is evidence-led, but it is not a floor or ceiling. It uses cohort averages from mature reporting restaurants, while a specific unit can have lower or higher sales, labor efficiency, occupancy costs and capital needs.
- Reporting selection: 29 of the 91 mature Sales Group restaurants did not provide complete cost and EBITDA data. Their economics may differ from the 62 reporting restaurants.
- New-unit exclusion: 15 franchised restaurants open for less than the full measurement period were excluded, so the results do not describe ramp-up performance.
- Average versus individual result: only 26 of 62 restaurants, or 43.5%, were at or above the 17.6% average EBITDA percentage.
- Owner labor: the $60,000 manager normalization improves comparability, but an active owner may work more or less than a hired manager and may require additional management support.
- Financing: EUG Franchising, LLC does not offer direct or indirect financing. Interest and principal payments depend on the buyer's third-party loan terms and are not deducted from EBITDA.
- Capital expenditure: depreciation, amortization, remodels, replacement equipment and maintenance capital are not the same as current operating expense and can reduce distributable cash.
- Personal taxes: entity structure, state, local deductions and owner circumstances determine tax liability. No after-tax take-home estimate is supportable from Item 19.
The 62-unit cost sample is substantial and clearly defined, which supports a High evidence-confidence label. It is still a reporting subset. The most important unresolved uncertainty is whether a buyer's target market and operating plan resemble the reporting restaurants, especially on labor and occupancy.
What should a prospective owner verify before relying on the range?
A buyer should reconcile the Item 19 substantiation to local operating assumptions and franchisee interviews. The Federal Trade Commission advises prospective franchisees to examine the source, limitations and assumptions behind financial performance representations and to request written substantiation.
- Request the written substantiation for the 2026 Item 19 Gross Sales, expense and EBITDA tables.
- Ask whether the $82 weekly Technology Fee, $2,500 Annual Conference Fee and other required charges are consistently included in Other Operating Costs.
- Compare the proposed site's rent, CAM, utilities and repair obligations with the Item 19 average and the top-half and bottom-half cohorts.
- Ask manager-run franchisees what total compensation, payroll burden and backup management actually cost in the target labor market.
- Ask Managing Owners how many hours they work and which paid management positions remain after the owner replaces the Designated Manager.
- Review restaurant-level capital expenditure, equipment replacement, maintenance and debt service separately from EBITDA.
- Use Item 20 contacts to interview both current and former franchisees, while recognizing that some may be restricted by confidentiality clauses.
- Reconcile any sales or earnings statement from a seller, broker or representative to the current Item 19 disclosure or an authorized written supplement.
What is the strongest decision-useful earnings view?
The strongest defensible annual range is approximately $170,000-$326,000 of FDD-derived EBITDA per mature franchised Eggs Up Grill Restaurant, with a central all-group result near $248,000. This is a manager-normalized, pre-tax, pre-interest, pre-debt-principal and pre-capital-expenditure business-earnings proxy, not an owner's salary or after-tax take-home pay.
An owner who personally replaces the Designated Manager may have an estimated owner-operator benefit of approximately $230,000-$386,000, but $60,000 of that amount represents labor value for work performed. The most important earnings driver is the combined food-and-labor burden; the largest unresolved uncertainty is how closely the target location's labor, occupancy and fixed-fee treatment match the 62 reporting restaurants.
Before relying on the range, verify the current Item 19 substantiation, the classification of recurring fees, local manager compensation, capital expenditure and debt service, then test those assumptions in interviews with current and former franchisees listed through Item 20.