FranchiseVerdict
Bombshells Restaurant & Bar logo
FV-00364·MODERATEExcellent95

Bombshells Restaurant & Bar

Formerly known as Build My Burgers

Food & Beverage - Full ServiceFranchising since 2015Website
Investment
$2.1M – $5.7M
97th pct Full Service
Avg revenue
$4.6M
56th pct Full Service
Royalty
5.5%
50th pct Full Service
Units
12
45th pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $2.1M – $5.7M including a $50K franchise fee, 5.5% ongoing royalty.
  • Average unit revenue of $4.6M/year (median $4.6M).
  • Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 361 loans (below the industry average).
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
BMB Franchising Services, Inc.
Parent company
RCI Hospitality Holdings, Inc.
Incorporated in
Texas
HQ
10737 Cutten Road, Houston, TX 77066
Auditor
Marcum LLP
Audited financials
Franchisor revenue
$167K
vs $157K prior year
⚠ Going-concern note
Disclosed in FDD 2024
Status as of 2024; may have been resolved in a later filing we don't yet have.

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 Bombshells Restaurant & Bar unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $4,617,507
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $2.1M–$5.7M
Working capital
$
FDD reports $80K–$150K

Unlevered ROIC · per unit

17%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$693K
EBITDA margin
15.0%
Total invested
$4.0M
Payback
69 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Bombshells Restaurant & Bar units return on equity?

Edit assumptions

Equity IRR · 5-yr

24.6%

3.00× MOIC

Year-1 DSCR

3.45×

EBITDA ÷ debt service

Equity required

$20.9M

on $36.9M purchase

Total debt

$16.1M

SBA $5.0M + senior + seller note

SBA 7(a) request ($18.5M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Franchisees operate casual dining restaurants featuring American fare, spirits, and entertainment in a bar/lounge atmosphere. Day-to-day operations include restaurant management, staff scheduling, inventory/food cost control, and customer service across full-service dining and bar operations.

CEO
Eric S. Langan
Founded
2015
FDD year
2024
States available
1

Item 7 · what it costs

The Vitals

Total investment
$2.1M – $5.7M
All-in to open one unit
Liquid capital
$80K – $150K
Cash you must have on hand
Franchise fee
$50K
Royalty
5.5%
Percentage of Gross Sales · typical 6–8%
Ad fund
2.5%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$4.6M
Per unit, per year
Median gross sales
$4.6M
Item 19 type
Affiliate-owned outlets
Sample size
11 units
vs category median 15
Range (low → high)
$3.3M$5.6M
Cohort dispersion
Transparency
7 / 5
vs category median 4 / 5 · above
Revenue rank56th
vs Food & Beverage - Full Service peers
Investment cost rank97th
Lower investment ranks lower (better)
Royalty rate rank50th
Lower royalty = lower percentile (better)
Unit count rank45th
vs Food & Beverage - Full Service peers
Risk score rank35th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
12
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
12
Corporate units in the system
% franchised
0%
vs corporate-owned
2022
0-1
Franchised units
2023
1
Franchised units
2024
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 1 state 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.

1

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
361
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

57
Risk · 0-100
MODERATE57 / 100

Bombshells presents elevated risk due to parent company going concern status, $4M+ litigation history indicating governance failures, undisclosed unit profitability, and stagnant franchisee base of only 12 units.

Score breakdown · what drove the 57 / 100 rating

  1. 01HIGHGoing concern status indicates parent company financial distress despite $4.6M avg unit revenue
  2. 02HIGHThree major litigation settlements totaling $4M+ involving shareholder derivative, securities class action, and SEC penalties suggest governance/compliance failures at corporate level
  3. 03MINOROnly 12 units with unknown growth trajectory raises questions about system viability and franchisee recruitment success
  4. 04MEDNet income not disclosed in Item 19 prevents ROI validation; with 5.5% royalty on $4.6M revenue = $253K annual fee burden
  5. 05MEDHigh investment range ($2.1M–$5.6M) combined with undisclosed profitability creates significant return uncertainty
  6. 06MINORSEC settlement regarding executive compensation and related party transactions suggests potential misuse of franchisor resources

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
3
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Texas

Item 11

Training & Operations

Classroom training
70 hrs
On-the-job training
260 hrs
POS system
Aloha
Operating tech stack

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

2 numbers

Locked
(860) 240-••••
CT
(212) 416-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

Bombshells Restaurant & Bar · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above