Black Rock Bar & Grill
Bottom line
- Total investment $1.5M – $5.0M including a $50K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $3.4M/year (median $3.1M).
- Rated CAUTION with a risk score of 72/100.
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 Black Rock Bar & Grill unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Black Rock Bar & Grill units return on equity?
Equity IRR · 5-yr
25.0%
3.05× MOIC
Year-1 DSCR
3.37×
EBITDA ÷ debt service
Equity required
$19.0M
on $34.2M purchase
Total debt
$15.3M
SBA $5.0M + senior + seller note
Overview
About
Black Rock Bar & Grill franchisees operate full-service casual dining restaurants featuring grilled cuisine, alcoholic beverages, and bar services. Day-to-day operations include managing kitchen and front-of-house staff, inventory control, customer service, food preparation and plating, and ensuring compliance with local health and liquor licensing regulations.
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 · 14 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining franchise system with active litigation, undisclosed profitability, and potential franchisor-franchisee relationship problems present substantial investment risk.
Score breakdown · what drove the 72 / 100 rating
- 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
- 06HIGHNo going concern statement indicates financial stability questions at corporate level
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Black Rock Bar & Grill · FDD (2025) PDF