Bottom line
- Total investment $1.2M – $3.0M including a $60K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.4M/year (median $2.3M).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 24 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Anchor Bar unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Anchor Bar units return on equity?
Equity IRR · 5-yr
27.4%
3.35× MOIC
Year-1 DSCR
2.98×
EBITDA ÷ debt service
Equity required
$12.1M
on $24.5M purchase
Total debt
$12.3M
SBA $5.0M + senior + seller note
Overview
About
Anchor Bar franchisees operate full-service restaurants specializing in wings (the brand originated the Buffalo wing), typically in high-traffic locations. Day-to-day responsibilities include food preparation, kitchen management, front-of-house service, staff scheduling, inventory management, and brand standard compliance for food quality and customer experience.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Anchor Bar presents CAUTION-level risk: unvalidated profitability, concerning going concern status, small system size, and inability to verify that average $2.45M revenue translates to acceptable net income at this investment level.
Score breakdown · what drove the 54 / 100 rating
- 01MEDNo Item 19 (Net Income) disclosed - unable to validate profitability claims against $2.45M average revenue
- 02MINOROnly 17 units with unknown growth trajectory - insufficient scale and no visibility into system expansion or contraction
- 03HIGHGoing Concern status is FALSE - indicates franchisor may have financial/operational stability issues
- 04MINORHigh initial investment ($1.2M-$3M) with unvalidated return on investment creates substantial financial exposure
- 05MINOR5% royalty on gross revenues (not net) compounds risk if margins are thin - franchisees pay royalties even during losses
- 06HIGHNo disclosed litigation is a positive but combined with going concern issues suggests potential undisclosed disputes or financial distress
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Anchor Bar · FDD (2026) PDF