Black Rock Bar & Grill Franchise Cost, Revenue & Review 2026
- Investment
- $1.5M – $5.0M
- Disclosed sales
- $3.4M
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Black Rock Bar & Grill is a casual-dining franchise where guests cook steaks and entrees on sizzling hot volcanic stones, with a full bar. Franchisees run the restaurants, managing the kitchen, bar, and dining service.
FranchiseVerdict summary · 2026
A Black Rock Bar & Grill franchise requires a total initial investment of $1.5M – $5.0M, including a $50K franchise fee and an ongoing 4.0% royalty[2]. Per the 2025 FDD, average unit revenue was $3.4M[2]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.5M – $5.0M
- 36th pct Service Resta…
- Avg gross sales
- $3.4M
- 14th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 12
- 15th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.5M – $5.0M including a $50K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $3.4M/year (median $3.1M).
- RISKVerdict D (Below average), verdict score 30/100 (higher is better).
- GROWTHNegative: net -3 franchised outlets in the latest year (0 opened, 3 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sizzling Black Rock Steak House Franchising, Inc.
- Predecessor
- but we have three affiliates
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Lonny Morganroth
- Incorporated in
- MI
- HQ
- 30553 S Wixom Road, Suite 300, Wixom, Michigan 48393
- Auditor
- Davis Group, P.A.
- Audited financials
- Franchisor revenue
- $3.4M
- vs $4.4M prior year
Affiliated brands
- SBR Gift Cards
- Fountain Square Restaurant Holdings
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Lonny Morganroth
- Headquarters
- MI
- Founded
- 2014
- FDD year
- 2025
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 381% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $50K | $50K | |
| Location Assistance Feenot refundable | $0 | $500 | |
| Delayed Opening Feenot refundable | $0 | $6K | |
| Leasehold Improvementsnot refundable | $650K | $3.5M | |
| Lease Payments - 3 Monthsnot refundable | $56K | $100K | |
| Security Deposits | $22K | $36K | |
| Furniture, Fixtures and Equipmentnot refundable | $352K | $644K | |
| Signage (Interior and Exterior)not refundable | $13K | $32K | |
| Initial Inventorynot refundable | $80K | $100K | |
| Blueprints and Plansnot refundable | $22K | $50K | |
| Point of Sale Systemnot refundable | $27K | $50K | |
| Travel, lodging and meals for initial trainingnot refundable | $0 | $35K | |
| Insurance - 3 Monthsnot refundable | $6K | $26K | |
| Grand Opening Advertisingnot refundable | $10K | $10K | |
| Licenses and Permits (Not Including Liquor License)not refundable | $3K | $10K | |
| Professional Feesnot refundable | $2K | $4K | |
| Additional Funds - 3 Monthsnot refundable | $229K | $345K | |
| Total initial investment | $1.5M | $5.0M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.5M – $5.0M
- Top 40% of category vs category
- Liquid capital req'd
- $229K – $345K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 4.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% |
| Technology fee | $125 |
| Training fee | $2K |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Inventory (initial) | $80K – $100K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 114% above the full-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Black Rock Bar & Grill until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$3.5M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Black Rock Bar & Grill unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $3.4M
- Per unit, per year
- Median gross sales
- $3.1M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Gross Sales
- Sample size
- 11 outlets
- vs category median 18
- Range (low → high)
- $2.0M→$5.4MCited, not corroborated — printed on page 58 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 801 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $3.4M/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 6.0% (near the Full-Service Restaurants median).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -26.7% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Black Rock Bar & Grill Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- Opened
- 0
- Last reporting year
- Closed
- 3
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 25.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (3-yr)
- -26.7%
- Net unit change over 3 years
- 3-yr CAGR
- -26.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Transfer rate
- 13.3%
- Owners selling to other franchisees
- Continuity rate
- 78.6%
- Units that stayed open
- Ceased ops
- 20.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 4 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
4
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Declining franchise system with active litigation, undisclosed profitability, and potential franchisor-franchisee relationship problems present substantial investment risk.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Case 1: Franchisor filed suit against a franchisee and guarantors (Case No. 2:24-cv-10380, E.D. Michigan, Feb 2024) for trademark infringement and breach of franchise agreement; judgment obtained against franchisee. Case 2: Guarantor Franchise Holdings, LLC filed suit against franchisor in Florida state court (Case No. CACE-23-022807, Broward County) alleging tortious interference; franchisor defending.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Davis Group, P.A.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2024 audited total revenues $3,373,858 (auditor report dated April 30, 2025): Franchise fees, net of commissions $1,781,213; Rebates $1,133,340; Brand development fees $435,097; Franchise sales and termination fees $24,208. Prior year FY2023 total revenues $4,423,957. other_revenue reported here is the Rebates line.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 30 / 100 verdict
- 01MEDUnit count declined 21.4% YoY (12 units) indicating system contraction and potential franchisee dissatisfaction
- 02HIGHActive litigation between franchisor and franchisees (trademark/breach suit + countersuit for tortious interference) signals operational/relationship issues
- 03MEDNet income not disclosed despite average revenue of $3.4M, raising profitability and transparency concerns
- 04MEDHigh investment range ($1.5M-$5M) combined with unit decline creates unfavorable risk-reward profile
- 05MINORCountersuit alleging tortious interference suggests franchisor may have damaged franchisee business relationships or operations
- 06MINORNo going concern statement indicates financial stability questions at corporate level
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Michigan (county and state of franchisor's principal place of business) |
| Jury trial waiver | No |
| Governing law | MI |
| Litigation count | 2 |
View Item 3 litigation summary
Case 1: Franchisor filed suit against a franchisee and guarantors (Case No. 2:24-cv-10380, E.D. Michigan, Feb 2024) for trademark infringement and breach of franchise agreement; judgment obtained against franchisee. Case 2: Guarantor Franchise Holdings, LLC filed suit against franchisor in Florida state court (Case No. CACE-23-022807, Broward County) alleging tortious interference; franchisor defending.
Items 10, 11
Training & Operations
- Classroom training
- 43 hrs
- On-the-job training
- 163 hrs
- Training location
- Hartland, Michigan or Fort Lauderdale, Florida
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee selects subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Aloha (NCR)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha (NCR)
Item 20 · call current owners
Franchisee Contacts
12 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Black Rock Bar & Grill franchise?
The total investment to open a Black Rock Bar & Grill franchise ranges from $1.5M – $5.0M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Black Rock Bar & Grill franchise owners earn?
According to Item 19 of the Black Rock Bar & Grill FDD, the average gross sales per unit is $3.4M. The median is $3.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Black Rock Bar & Grill?
Black Rock Bar & Grill is franchised by Sizzling Black Rock Steak House Franchising, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Black Rock Bar & Grill FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Black Rock Bar & Grill FDD and qualifies whose outlets they describe.
What is Black Rock Bar & Grill's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Black Rock Bar & Grill (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Black Rock Bar & Grill franchise locations are there?
As of their most recent FDD filing, Black Rock Bar & Grill has 12 total units in the United States, including 11 franchised units and 1 company-owned units.
Is Black Rock Bar & Grill a good franchise to buy?
FranchiseVerdict rates Black Rock Bar & Grill as a D-grade franchise with a verdict score of 30 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.